On the 24th of September 2017 are general elections in Germany. Admittingly, party programs are vague at best. Some suggestions and ideas found in the party programs may, however, have significant consequences for the German power market and neighbouring countries, including the Nordic countries.
After months of uncertainty, Sweden and Norway have agreed to extend the Elcertificate market. The market is prolonged for 10 years and Sweden unilaterally increases the target by 18 TWh. The extension lead to a significant increase in prices.
Subsidies to renewable electricity should reduce costs and make new technologies competitive in the market. Now many argue that wind and PV generation is mature. Does that mean that it is time to phase out wind and solar subsidies?
In the public debate, the rapid growth in wind and PV capacity is often blamed for low spot market prices. Fact is, while renewable developments contributed somewhat to the price decline, the main reason for low power prices on the Continent and in the Nordics are reduced fuel and carbon prices.
The current low power price level has triggered a discussion where some claim that the market for electrical energy is dead, and that the pricing mechanisms for electricity will change dramatically looking forward. We argue that winter energy will have a substantial value in the Nordic market, even if the amount of solar power and […]
European legislation to counter risks in the financial sector is spilling over to energy derivative trading.
How a market based support scheme delivers market based decisions – A short comment on Fosen-Snillfjord »
Statkraft’s decision not to go ahead with the projects at Fosen and Snillfjord is reasonable market behaviour in a market based support scheme and should not be regarded as a sign that market participants are losing faith in the certificate market. There are however flaws in the market design that need to be addressed by […]
A new Norwegian climate policy white paper suggests that Norway should fulfil its climate policy target in closer cooperation with the EU. A central question is whether this implies tighter domestic mitigation policies in Norway.
The Swedish government has announced that it will propose a new, separate support scheme for offshore wind power in Sweden. Cost assessments show that operation and investment costs of offshore wind power are 40 percent higher than for onshore wind power. With a large scale development of wind power in Sweden, the cost difference can […]
Flow based market coupling is now being implemented in Central Western Europe (Germany, France, the Netherlands and Belgium), as a means to utilize the grid more efficiently.