February 2, 2023

Athens News

News in English from Greece

Energy exchange: the price of electricity returned to pre-crisis levels

Today, January 17, the average exchange wholesale price for electricity fell to lowest level in the last seven months. In fact, it amounted to 132.48 euros per MWh, falling by 35.19% compared to yesterday.

Moreover, on January 18, the level in 86.77 euros/MWh, which actually returns the prices to the pre-crisis period, June 2021! Today, in the Dutch hub, February futures contracts were even trading at 51 EUR/MWh.

Renewable energy sources

The decrease in the average exchange price for electricity is explained by the large share of cheap renewable energy sources in the energy balance of the country’s electricity generation. Thanks to strong winds blowing recently, renewable energy sources accounted for 51.97% of the total energy mix. Electricity imports accounted for 24.46%, while expensive natural gas accounted for only 9.39%.

green electricity, at least in Greece, it came out much cheaper than that obtained from traditional energy sources. Thanks to this, the price of electricity today is at a seven-month low.

Price de-escalation

Electricity prices on the Hellenic Energy Exchange have been on a downward trend in recent weeks. On January 1, the average price was at the level of 270 euros per MWh and is gradually decreasing. In recent days, it has been moving towards the level of 200 euros per megawatt-hour.

The reduction in the European price of TTF gas, which currently stands at 55 euros per MWh, is gradually being transferred to the Greek energy market. It should be recalled that in the domestic market, gas pricing is based on the prices of the previous month.

The trajectory of lower gas prices and wholesale electricity prices is estimated to be conveyed in the February bills. On January 20, providers will announce tariffs for the next month. According to the information, the price range (nominal prices without subsidies) is from 0.20 to 0.22 euros per kilowatt-hour.

Do not rush to rejoice

Athens news wants to reassure readers and urge not to rush to rejoice ahead of time. Prices on the energy exchange and real prices from electricity suppliers are slightly different things. If this trend continues for some time, while the weather does not change, then the prices for the population – end consumers will slowly go down. And the interval between price reductions on the stock exchange and for the end user is usually at least 1 month.

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