Electricity and Gas Prices In Europe Risen Sharply
Recently, the global energy prices have continued to rise, the supply and demand situation has been tense, the prices of natural gas, thermal coal, and oil have soared, and electricity prices in many countries have risen rapidly.
The international thermal coal price still remained high. As of January 18, 2022, the thermal coal price index in Newcastle, Australia was 1,634 yuan/ton, a year-on-year increase of 668 yuan/ton, an increase of over 144%. The Richard Bay thermal coal price index was 1,188 yuan/ton, a year-on-year increase of 670 yuan/ton, an increase of 77%. The thermal coal price index in the European ARA three-port market was 1,374 yuan/ton, a year-on-year increase of 498 yuan/ton, an increase of 176%. On the other hand, natural gas prices remain high. On January 17, 2022, the TTF benchmark Dutch natural gas futures price, regarded as the "wind vane of European natural gas prices", was at 77 euros/MWh, a record high for the same period. On December 21, 2021, the offer hit a record high of EUR 179.89/MWh, an increase of nearly 900% from the beginning of 2021.
1. The overall situation of electricity prices in Europe.
Due to the different resource endowments and energy structures of European countries, the impact of rising fuel prices on electricity prices varies, with wholesale electricity prices remaining stable in some regions and skyrocketing in some regions.
In Norway, as 98% of its electricity supply comes from hydropower and natural gas resources are abundant, the overall price fluctuation is small.
In Spain, according to statistics, from January to December 2021, the average electricity price rose from 58.58 euros/MWh to 409 euros/MWh.\
In the United Kingdom: According to statistics, from January to December 2021, the average electricity price rose from 78.69 euros/MWh to 579.67/MWh.
In German, according to statistics, from January to December 2021, the average electricity price rose from 74.33 euros/MWh to 431.98 euros/MWh.
2. Analysis of the main reasons for the price increase.
First, after the impact of the epidemic, the global oil and gas production capacity has contracted significantly.
Second, Europe experienced a freezing winter in 2020, consuming a large number of natural gas inventories.
Third, Russia, a major supplier of natural gas, reduced its international supply of natural gas.
Fourth, Europe lacks its own energy endowment and is highly dependent on external energy supply.
Fifth, the pace of clean energy transformation is radical, and the vulnerability of countries with an unbalanced energy structure is highlighted.
Sixth, the mutual aid of resources in the unified power market has not been brought into full play.
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