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Renewables cut electricity price hikes

Featured Renewables cut electricity price hikes

Even higher increases in electricity prices would have been paid by consumers in December if it were not for Renewable Energy Sources.

Cheaper and cleaner forms of energy (wind, photovoltaic and hydroelectric) have curbed price increases of 70 euros / MWh, according to Environment and Energy Minister Costas Skrekas, as they hit a record low last month. The latter emerges from Independent Power Transmission Operator IPTO's monthly energy bulletin and demonstrates the importance of the green transition, especially at a time when the energy crisis has dealt a severe blow to family and business budgets.

The record

More specifically, in December the production of electricity from RES amounted to 1,706 GWh, when the next highest efficiency was recorded in January of the same year (2021) at 1,607 GWh. If the production of hydroelectric power stations is taken into account - which last month came to 814 GWh - then the total of clean and cheap energy was formed at 2,520 GWh. This is also a record compared to the previous months of last year. Total power generation for December (including lignite power plants and gas plants) was at 4,880 GWh and was the second highest performance after hot July at 4,890 GWh.

For the same month compared to the corresponding month of 2020 the production of electricity from RES was higher by 33%, while from the hydroelectric power stations the increase was impressive by 313%, due to the high rainfall last year.

In total, for the month of December, RES and hydroelectric power corresponded to 52% of the mixture with the fuel - "king" of the energy transition, natural gas, covering 39% of total electricity generation, while lignite covered 10%. In fact, compared to December last year, lignite was reduced by 43%.

RES, however, in total in 2021 recorded a historical record of electricity generation. Last year the production of electricity from green energy sources jumped to 17,193 GWh. If the 5,293 GWh of hydroelectric power are added together, then the total "clean" fuel for electricity generation amounted to 22,486 GWh. Last year they accounted for 46.15% of total electricity generation, which closed at 48,721 GWh.

The "brake" on increases

As for the effects on energy costs from the participation - record of RES in the last month, these are positive for the final consumers. A relevant remark was made by minister Costas Skrekas during his participation in the informal Council of Energy Ministers of the EU. on January 21 and 22 in the city of Amiens, France: "The average price in the wholesale market of electricity, without the production of RES in December in our country would reach 315 euros / MWh (Megawatt hours), compared to 235 euros / MWh that it finally came to," said the Greek minister, referring to the research results of the Aristotle University of Thessaloniki. He added that "the energy transition is not responsible for the crisis, as populist voices claim."

Electricity demand

At the levels of 2019, the total demand for electricity rebounded in the 12 months of 2021, according to the monthly energy bulletin of IPTO.

2020 is considered a special year because of the lockdowns caused by the pandemic and so market experts consider it more comparable to 2019 for these measures.

Thus, in 2021 the demand for electricity amounted to 52,322 GWh, slightly higher than in 2019 when it closed at 52,101 GWh. The course of electricity consumption largely shows the return of economic activity to normal after the lockdowns of 2020. Compared to last year, electricity demand increased by 4.7%.

The shares of the suppliers

The energy crisis has also caused reshuffles in the shares of electricity suppliers.

According to the monthly energy bulletin of IPTO, PPC in the last four months of 2021 increased its percentages in electricity supply. More specifically, in December its share increased to 63.9% from 63.1% in November. It was at 63.4% in October and had fallen to an all-time low of 62% in September.

Market participants interpret the increase of the public company's shares in the return of consumers from its competitors due to the energy crisis.

For the last month PPC was followed by Protergia with 6.86%, HERON with 6.48%, Elpedison with 5.81%, NRG with 4.24% keeps its shares almost unchanged compared to the rest, while Watt & Volt with a commission rate of 2.57% is moving slightly upwards.

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