In the second part of this blog series, we elaborate on the links between the coronavirus pandemic and energy markets. Specifically, we examine the possible medium-term consequences for the front years 2021 to 2025 on Europe’s electricity markets due to the coronavirus and the turbulences on the oil market. We conducted the analysis using the fundamental model Power2Sim.
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.
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.
With the current “EU Energy Outlook 2050”, Energy Brainpool shows long-term trends in Europe. The European energy system will change dramatically in the coming decades. What do current developments in the EU mean for electricity prices, revenue potential and risks for photovoltaics and wind?
With the draft of the Coal Exit Law, the Federal Government has not only put the tender procedure for the shutdown of coal capacities on paper. At the same time, changes were announced for renewable energies. According to the International Energy Agency’s World Energy Outlook 2019, global CO2 emissions might rise until 2040. In terms of prices, November continues where October left off: going down.
The fact that the expansion of wind power in Germany struggles is shown by the results of the tender of August 2019. Meanwhile, e-mobility is making inroads in Germany. A law for supporting the structural change for the coal region is formulated and only needs to be passed. Besides that prices on the futures market in August 2019 were pointing downwards.
With the current “EU Energy Outlook 2050” Energy Brainpool shows long-term trends in Europe. Climate change and aging power plants are forcing the European Union and many countries to change their energy policies. In addition, there are market changes. What do these developments mean for electricity prices, revenue potential and risks for photovoltaics and wind?