Field Drying Circle Couplings will be displayed on August 10, 2021, in front of the RWE AG power plant near Romeerkirchen.
Young Tang | Live Photo | Getty Images
London: European energy prices have risen in recent weeks, ranging from the strongest commodities and carbon prices to low wind output for many reasons.
Moreover, the energy prices record is not expected to be completed any time soon, energy analysts warn that market nerves may remain in the winter.
Gas prices rose to 79 79 per hour ($ 93.31) on Wednesday, according to the European TTF. According to Reuters, the contract has increased by more than 250% since January, with registrations doubling in France and Germany.
In Britain, where electricity bills are currently the most expensive in the world, the country is heavily dependent on gas and renewable energy, so energy prices have risen.
Britain’s daily electricity prices rose to almost 19% on Wednesday, reaching 475 pounds ($ 656.5), Reuters reported. The contract was already in close proximity after a British-French power outage cut off electricity supply to Britain.
“So far, gas prices are the biggest thing,” Glen Rickson, head of European energy analysis at the SNP Global Platform, told CNBC.
High gas prices are also a “big driver” for raising carbon and coal prices, Rickson said, noting that there are other supporting factors in the area, such as low wind turbines and the absence of a nuclear plant.
Carbon prices in Europe have shaken this year as the European Union cuts its supply of emissions. The European Union’s carbon price has risen by more than 60 euros per metro for the first time in recent weeks, and is trading slightly below Thursday.
The EU’s emission trading system is the world’s largest carbon trading program, covering about 40% of greenhouse gas emissions and charging for each metric ton of carbon dioxide emissions. Recorded carbon prices make even the most polluted sources of energy more attractive because, for example, coal burns a lot of carbon dioxide.
Rickson said European energy prices will be “highly dependent” on gas prices this summer, and expects gas prices to rise further in the coming months. Alongside the “average” picture, we expect prices to fluctuate when wind turnover is high, fluctuating from low and even negative clock prices, when wind is low, and when demand is high.
How did we get here?
Unexpectedly cold weather conditions plunged European gas prices below the five-year average, indicating a breakdown in supply.
Since then, Europe has struggled to recover its winter gas supplies. While countries are easing the CV-19 restrictions, economic reform has also been linked to high demand for gas.
An institution near the North Stream 2 natural gas pipeline at Nord Stream 2.
Peter Kovalev | TASS | Getty Images
In addition, Russia has been slow to deliver piped natural gas to the region, raising questions about whether this could be a deliberate step to strengthen the flow of Nordic streams. It is expected that it will be able to solve some of the region’s supply problems.
Commodity Intelligence Service ICIS Energy senior analyst Stephen Konstantinov told CNBC: This is coupled with significant competition from Asian and South American LNG supplies, which are pushing up gas prices.
Threats of climate change
Earlier this month, rising gas prices and low wind output prompted the UK to burn down an old coal-fired power plant to meet its electricity demand.
The move raises serious questions about the government’s environmental commitment in a climate crisis. To be sure, coal is the most important fossil fuel in terms of emissions, so it is the most important target to replace in the proposed column in renewable alternatives.
Asked how the UK’s decision to convert it to coal could dramatically reduce fossil fuel consumption, Konstantinov said: “It’s a little ridiculous, isn’t it?”
Activists march with flags and banners protesting the nature of the catastrophic riots in central London.
Loredana Sangulino | SOPA Images | LightRocket | Getty Images
“If there was enough wind, perhaps on a relatively low energy demand day, more than half or two-thirds of England’s energy needs would be met. Instead, we see that we do not really have the wind and that we are compelled. A generation burned with coal will pollute. “
He added, “At first glance, this is incompatible with the will of the government. But it is also driven by renewable energy, such as wind and sun. ”
The United Kingdom has pledged to completely eliminate carbon emissions by October 2024 to reduce carbon emissions.
“We believe the basic drivers, the high gas prices and the high carbon prices, are here to stay in ICIS for the next few months,” Konstantinov said.
According to Wood McKenzie, a global natural resource consultant, British and European gas prices are expected to “rise at current levels throughout the winter.”
“The recovery of gas production in the UK is crucial this winter,” he added. And investing in domestic gas supply is crucial to ensure a smooth transition to future, renewable and new technologies.