Electricity prices are rising as a result of the Ukraine war and the gas crisis. Anyone who buys green electricity should probably feel safe. There is no gas in green electricity. But green electricity consumers also have to be prepared for higher bills.
Prices are rising, there are tough months ahead of us. Heating is becoming significantly more expensive thanks to the enormous increase in gas prices. A consequence of the Russian war of aggression in Ukraine and reduced gas supplies from Russia. As a result, electricity prices are also rising.
Recipients of green electricity may feel safe from rising electricity bills. After all, there is no natural gas in green electricity, only energy from wind, sun, water or biomass.
But even those who use green electricity at home must be prepared for price increases.
“Rising market prices always affect green electricity tariffs”
There are various reasons for this. One of them is the electricity market, as E explains. Because the prices for the electricity deliveries arise on the electricity exchanges, for example the Leipzig electricity exchange EEX. Power plant operators or wholesalers meet the electricity suppliers or industrial companies here, i.e. the consumers.
The providers E.ON and EnBW also trade on electricity exchanges. “Various market factors such as procurement costs or supply and demand determine the prices for electricity on the stock exchanges. Since electricity from coal and gas is more expensive in the current situation, the demand and thus also the price for green electricity are increasing. Rising market prices therefore always have an effect Green electricity tariffs. That is currently the case,” said a spokesman for EnBW dem star With.
However, the structure of the electricity market also plays a role, as a spokesman for the electricity company E.ON points out star-Inquiry notifies. The coverage of the supply and the design of the electricity price are based on the so-called merit order. “In short, this stipulates that the price of the most expensive type of production is charged for electricity,” said the E.ON spokesman.
In practice, this means that “in the order in which they are offered, power plants are added from cheap to expensive until all consumers can cover their electricity purchases,” writes the Ebersberg-Munich energy agency.
Regional green electricity is also affected
In this, renewable energies come first, then nuclear power plants, then brown coal power plants, followed by hard coal power plants, gas and steam power plants and finally gas turbine power plants. “The electricity price for all providers is based on the most expensive offer from the provider that contributes to the fulfillment of the required amount of electricity.” The price of electricity therefore depends on the most expensive power plant that is still needed to cover the demand for electricity. And these are the gas power plants at the moment.
So if the gas price increases worldwide, electricity costs in Germany will also increase – even with green electricity.
According to the Energy Agency Ebersberg-Munich, regional green electricity is also affected by the price fluctuations. Because such direct supply contracts – the so-called over the counter or OTC contracts – are also based on electricity exchange prices, as it is the benchmark for standard market price levels.
The problem: If green electricity providers sell their electricity above the market price, they would not be competitive. However, if the green electricity provider wants to pay lower prices, the operators of wind turbines and the like would switch to customers who buy at the exchange price – or go directly to the electricity price exchange. That is why direct and even regional supply contracts for green electricity are also influenced by the exchange price.
“Unfortunately, there is no price advantage associated with this”
But by how much is green electricity more expensive? According to EnBW, forecasting the development of the costs for green electricity is difficult due to current developments.
The reduced volume of gas from Russia further increased the momentum on the energy markets. This and other external factors make it difficult to forecast price trends.
Green electricity remains the more sustainable alternative. “Unfortunately, there is no price advantage associated with this.”
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
