Stratospheric Electricity Prices In Europe
August 23rd, 2022 at 1:10:13 PM
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Electricity prices in Europe are bounding past 500 Euros per Megawatt-hour, or 0.5 Euros per kilowatt-hr. Prices are going up 25% per day at times. A Euro equals a US dollar for those trying to do currency conversions this day.
The typical price is around 30 Euros per Megawatt-hour, until 2021. Prices are going parabolic and fast. I don't see how the grids are going to get past the next few billing cycles when nobody pays their bills.
Dieter checked my math on the kilowatt-hr price and he's right. But I do notice that a German posted his electric bill and it was around 0.75 Euros for the energy and another 0.35 Euros for the surcharges and taxes so his bill was 1.10 Euros per kw-hr. Bills are coming out soon all over. London even had to buy energy from Belgium for an hour last month at over $11,000 per Megawatt-hr, or $11/kw-hr. The prices of energy are constantly changing at this point by the hour with spikes here and dips there and the companies try to average it all out come billing time. Prices are fluctuating several hundred Euros a day in most markets.
The typical price is around 30 Euros per Megawatt-hour, until 2021. Prices are going parabolic and fast. I don't see how the grids are going to get past the next few billing cycles when nobody pays their bills.
Dieter checked my math on the kilowatt-hr price and he's right. But I do notice that a German posted his electric bill and it was around 0.75 Euros for the energy and another 0.35 Euros for the surcharges and taxes so his bill was 1.10 Euros per kw-hr. Bills are coming out soon all over. London even had to buy energy from Belgium for an hour last month at over $11,000 per Megawatt-hr, or $11/kw-hr. The prices of energy are constantly changing at this point by the hour with spikes here and dips there and the companies try to average it all out come billing time. Prices are fluctuating several hundred Euros a day in most markets.
Last edited by: ChumpChange on Aug 23, 2022
August 23rd, 2022 at 1:21:40 PM
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Quote: ChumpChangeElectricity prices in Europe are bounding past 500 Euros per Megawatt-hour, or 5 Euros per kilowatt-hr.
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Can you double check that?
€5/kwH should be like €5000/MwH, unless I misremember how many zeroes per prefix.
May the cards fall in your favor.
August 23rd, 2022 at 5:11:38 PM
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Reason for the above are manyfold, starting with Germany's decision to shut off all their nuclear generation stations right after Japan's Fukishima reactor got tsunami'd. Then there was the wave of coal powered generators being replaced with natural gas-fired generators and/or wind/solar generators. Many countries changed their natural gas supplier to Russia and mothballed their own sources. Fracking dropped off severely. Then the Nord-Stream 2 pipeline came online, and everyone jumped on that. At this point, Europe was betting the farm (literally) that Russia would keep filling that pipeline with natural gas.
Finally, the Ukrainian War had NATO's European powers supplying weapons/arms/training to the Ukrainians, which incentivized Putin to shut down the Nord-Stream 2 pipeline. Electricity suppliers turned around to look for their backup plan only to find out that the United States was 'transitioning away from fossil fuel' and had no LNG to sell them. Their only hope now is that the wind continues to blow and the clouds stay away, until the NS2 pipeline comes back online.
Finally, the Ukrainian War had NATO's European powers supplying weapons/arms/training to the Ukrainians, which incentivized Putin to shut down the Nord-Stream 2 pipeline. Electricity suppliers turned around to look for their backup plan only to find out that the United States was 'transitioning away from fossil fuel' and had no LNG to sell them. Their only hope now is that the wind continues to blow and the clouds stay away, until the NS2 pipeline comes back online.
