Electricity: Record drop in wholesale prices due to RES

How was the price formed on the energy exchange on August 12?

The average price of electricity on the Hellenic Energy Exchange hit a record low on Saturday.

The “next day market” fell to 59.65 euros/MWh, the third lowest price since the beginning of the year. The cheapest megawatt was built on May 28th at 50.92€/MWh and the second on January 19th at 58.44€/MWh.

It is worth noting that a price was recorded just above zero during the day. To be precise, at 12.00 and 13.00 the average prices are 0.52 and 0.26 €/MWh.

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The midday hours are those when renewables have the greatest participation in the energy mix.

Tomorrow, Saturday, renewable energy will dominate power generation technologies, accounting for 52.88% of the energy mix. It is followed by natural gas at 21%, hydroelectric power at 7.32%, imports at 6.91%, and laget at 6.52%.

If taken into account with RES and hydropower, the green energy of tomorrow exceeds 60% of the total mix.

RES, because of lower cost of production when it dominates the mix, lowers wholesale electricity prices.

So, because of summers and meltdowns, PV and wind farms are running longer hours, which limits electricity generation from expensive natural gas and lignite, which is also expensive.

It should be noted that renewable energy sources during lunch hours amount to 90% of the total electricity generation. These are the hours when prices are just above zero.

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The average electricity price for Saturday compared to today is down by more than 25%. Today it is set at 79.85 euros.

The price drop is due not only to RES, but also to the demand for electricity, which is also lower on weekends.

However, this decline in prices does not mean in any case that the risk of recurrence of increases has been eliminated.

Estimates for the winter season indicate an increase in electricity prices.

source: Ot.gr