Even if European countries have retracted Corona measures, the pandemic still has a major impact on energy policies and markets. PV beats wind in joint tenders and policy makers have agreed on changes for PV and wind. At the long end prices, stabilised or even went up again in May 2020.
The global spread of the Sars-CoV-2 pathogen has an impact on all global energy markets. With lower demand for energy due to social and economic constraints, commodity prices on the markets have collapsed dramatically.
Coal-fired power generation is sinking, wind is disappointing in tenders for renewable energies and PV is booming, and the National Hydrogen Strategy is making progress – these were the big issues in February.
As the transformation of the energy system to renewable energies, increased sector coupling and electrification progresses, grid infrastructures are also subject to change. The operators of electricity and gas networks must prepare themselves for this.
The coal phase-out has finally been stipulated in a law, even if less ambitious than the coal commission had proposed. The results of the last solar auction in December 2019 have been published and German emissions fell by about 50 million tonnes of CO2 last year. In the first month of 2020, prices at the long end continued to fall.
What course was set for the energy industry in 2019 and what will be remembered until the next decade? In 2019, the discussion was completely dominated by the climate package, the “right” CO2 price and the preparations for the coal phase-out. Another top topic from the market side: PPAs come leave their niche. For renewables positive as well as negative records have been set.
After long discussions, the federal and federal state governments agreed on changes to the climate package before the end of the year. The Federal Network Agency also announced a number of tender results for renewable energies. In addition, the third smart meter gateway was certified, so their rollout can begin soon. However, a real end-of-year rally on the price side of things can only be noted for oil.