Since the beginning of August 2017 the prices on the electricity and commodity markets have been breaking one record after the other. Is it eventually time to pop the corks and finally ring in the end of the lean times? Or is it barely a temporary anomaly? To find an answer, we investigate the causes of the current price development.
The third round of tendering for wind energy, with surcharges of less than 4 cents/ kWh wasn’t a major surprise. Still, it caused the intervention of the Federal Network Agency for the tenders in 2018. The applications of Blockchain in the energy sector are becoming more diverse, while the prices at the long end of the curve have calmed down again. Read all about the developments in the energy market in November 2017.
In a short study Energy Brainpool has evaluated the decommissioning of coal capacities on behalf of Greenpeace e.V. In order to achieve the 2020 climate targets, additional brown and hard coal capacities will have to be decommissioned. Read in this article how these shutdowns affect the security of supply and possible emission and electricity quotas for coal-fired power plants.
If the electricity prices on the spot market are negative for at least six consecutive hours, the payment of remuneration for renewable energies will cease. This matter of fact is determined by §51 of the EEG 2017. Nevertheless already this year in the period of the 28th to the 29th of October, 21 consecutive hours with negative prices have been recorded. As a result the future assures that renewable energy systems will be denied by compensation payments. Energy Brainpool has published a white paper which examines this risk over the period 2016-2036.
The PV-tender for October 2017 resulted in a drop of the average price level below 5 cent/kWh. Simultaneously, the cost allocation under the German Renewable Energy Act (EEG levy) decreases for 2018. The discussion concerning sector coupling continues to gain momentum, although the prospective German “Jamaica” government did not yet set clear lines regarding the energy policy. The spot market prices reached record-breaking levels both on the positive and negative scale in October 2017.
On Sunday, October 29th 2017 a high power generation from wind power plants hit low demand for electricity in Germany. Negative prices occurred over a maximum period of 21 hours, so that the production was affected by § 51 EEG 2017. Therefore, the number of negative prices rose to 103 for this year already.
The “gloomy” September 2017 lead to a decline in solar production of around 33 percent compared to the previous month. Baseload prices are rising, due to the decline in production from variable renewable energy sources (vRES).
The worldwide reduction of greenhouse gas emissions is the prerequisite for achieving the climate goals agreed in course of the UN Climate Conference in Paris. The pricing of those greenhouse gases would be an effective market mechanism to realize emission savings.