The sun is not shining and the wind is not blowing. Electricity prices due to the unavailability of renewable energy sources are approaching the peaks from the time of the energy crisis
The price of electricity on energy exchanges has been rising very quickly in recent days and could soon, in the event of continuing unfavorable weather, approach the levels seen during the energy crisis. The main issue is renewable sources, which have not been supplying a sufficient amount of energy to the grid in recent days due to meteorological conditions.
Europe is once again facing a sharp increase in electricity prices. The reason is simple – the weather. Recent days have been marked by overcast skies and little or no wind across much of the European continent. This impacts electricity production in photovoltaic and wind power plants, which are becoming increasingly important sources, not only in Germany. The lack of energy from renewable sources is currently having a significant impact on prices in what is called the spot market.
The maximum price on one of the very important spot markets – EPEX SPOT – reached 0.55 euros (approximately 13.90 CZK) per kWh on Tuesday, with the average for the entire day being 0.165 euros (approximately 4.17 CZK). The following days, however, saw a much worse situation, as the maximum price rose to 0.82 euros (20.70 CZK) per kWh on Wednesday. These prices are quickly approaching the peaks reached by the electricity spot markets during the height of the energy crisis.
Currently high prices in the spot market are not too problematic for regular customers who use standard tariffs from energy suppliers. With standard tariffs, customers have prices adjusted by contract and do not experience such rapid fluctuations. So-called spot prices mainly affect owners of photovoltaic power plants, who can, conversely, use them to achieve significant savings during periods of surpluses from renewable sources.
The price of electricity on energy exchanges has been rising very quickly in recent days and could soon, in the event of continuing unfavorable...
Dynamic tariffs (those using current prices on the spot market), which reflect the current market price of electricity in real time, provide savings under normal conditions, but during energy crises can become a nightmare. Companies like Tibber and other similar providers warn their customers to try to minimize consumption during price peaks.
According to experts, solutions to the current market fluctuations caused by renewable sources will come with their stabilization. This will primarily require significant investments in energy storage in the form of hydrogen systems or battery storage facilities. These technologies will be able to cover at least part of the demand in periods without sun or wind without having to burn additional coal or gas in fossil power plants.
It will also be necessary to better connect the energy infrastructure across the countries of the European Union. This should ensure the availability of renewable electricity, which is essential for the stability of energy systems. In situations where the sun is not shining or the wind is not blowing in northern countries, their demand could be met, for example, by photovoltaic power plants in southern Europe.
