And suddenly electricity prices were on fire in Europe. The energy exchanges in major markets of central and northern Europe went “red” with wholesale electricity prices shooting up to 70% for tomorrow, November 12.
Executives of electricity companies talking to OT talk about the “dunkelflaute” phenomenon in the markets. The exact translation from the German terminology into the Greek language is “dark silence”.
The “dunkelflaute” effect
The large increases, as recorded in the EUENERGY map published by OT, occur in just one day.
Day-ahead markets in stock markets from Sweden to Germany and from Hungary to Greece soared.
Executives of electricity companies talking to OT talk about the “dunkelflaute” phenomenon in the markets. The exact translation from the German terminology into the Greek language is “dark silence”.
In simpler words, when wind farms do not work due to apnea and photovoltaics due to insufficient sunshine, the power deficit is covered by conventional power plants. That is, factories fueled by natural gas and other fossil fuels, which are more expensive.
The result is that electricity prices rise.
As long as electricity transmission networks are saturated and as long as energy storage systems are in their infancy, price spikes at the slightest change in weather will be common
The problem on the way to the energy transition
The “dunkelflaute” phenomenon on the way to the green transition will be frequent, competent actors explain to OT.
As long as electricity transmission networks are saturated or with weak interconnections between countries, and as long as energy storage systems (pumped storage and industrial batteries) are in their infancy, price spikes will be more frequent. With the slightest change in weather conditions, electricity costs will skyrocket.
The cost of electricity in Greece and Europe
As can be seen from the EUENERGY data, the prices increased significantly.
In the Greek market tomorrow, November 12, wholesale electricity prices will be 16% higher. In Norway the increases hit 79%, in Sweden up to 40% and so on.
In southeastern Europe and the neighboring markets of Greece, prices soared to unimaginable heights. In Hungary the average price is 306 euros per Megawatt hour, in Romania and Bulgaria it is 268 euros per Megawatt hour, while in Greece the price for tomorrow hits 202.22 euros per Megawatt hour.
This is the problematic part… of Europe’s electrical interconnections, especially in the one bordering Hungary.
According to market players, a sharp drop in winds and cloud cover in central and northern Europe combined with an increase in electricity demand in the above-mentioned regions due to lower temperatures sent prices soaring.
If sufficient energy storage systems were developed the quantities produced in the previous weeks by the wind systems would be accumulated in the batteries and channeled in such periods as the present when RES are not available. Thus, electricity prices would be moderate and certainly lower than these levels.
SOURCE: ot.gr
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