National News

Electricity costs twice in the EU — RT Business News


Electricity prices in the EU hit a new high on Tuesday, as natural gas prices rose further due to lower supply from Russia, according to data from the European Energy Exchange. AG.

Germany’s day-ahead benchmark prices hit €490.79 ($497) per megawatt-hour, compared to the June average of €218.03, according to market data provider Nord Pool.

Current prices are almost six times higher than in August 2021.

The EU energy market is reeling from fears over whether power plants will be able to supply enough electricity this winter amid tight gas supplies.

Gas prices in the region have quadrupled this year, driven by lower deliveries from Russia due to sanctions and technical setbacks related to Ukraine. EU countries have tried to diversify their imports by buying more liquefied natural gas (LNG), as well as increasing pipeline supplies from Norway, Algeria and Azerbaijan. However, according to senior EU diplomat Josep Borrell, the bloc is “approaching the limits of this extra gas“he can buy”non-Russian sources.” Meanwhile, France has increasingly turned to nuclear power to generate additional electricity, while other EU states have revived coal-fired power plants.

Nevertheless, according to Fabian Ronningen, an analyst at Rystad Energy, there are no signs of “extreme“Rising prices are moderating as additional nuclear, hydroelectric and coal generation capacity is not enough to offset the effects of dwindling Russian gas supplies.

READ MORE:
Cost of Germany’s new gas tax revealed – media

Prices will continue to rise towards winter, provided the supply situation from Russia does not improve. It is still the big wild card and will continue to be a price driver in the electricity market“, he told Bloomberg.

For more stories on economics and finance, visit RT’s business section

You can share this story on social media:

Rt

Back to top button