global growth. The cases of England and Germany
International elevation. These days European energy exchange Epex Wholesale electricity supply is expensive, the record in England where spot electricity prices are around 400 pounds per thousand kilowatt-hours, with a peak of 2 euros per kilowatt-hour for evening connections at 20 (1675 pounds per thousand kilowatt-hours). On the other hand, Germany is delaying the brutal blow of high energy prices until after the elections: gasoline may jump to 2.2-2.5 euros per liter (according to the analysis of the Handelsblatt newspaper), and electricity will arrive at unprecedented prices and be turned off so as not to frighten the voter. Moreover, Germany is moving towards full coal because the wind, without enough wind, has fallen into place. according to Federal Statistical Office in the first six months of 2021 there was a boom in excavations and conventional sources grew +20.9% and 56% while coal is again the number one energy source.
Nuclear, fields and renewable energy are not solved
Nuclear power, which does not emit carbon dioxide, and other non-fossil sources, such as renewables, help but are not enough to mitigate the phenomenon of rising prices. Why does all of atomic France, the industrialized country with the lowest carbon dioxide emitting rate in the world, have high prices? And what about the price hike in hydropower in Austria? basic. Renewable and nuclear energy producers are trying to get the best possible price when they sell their shipments of electricity in the energy exchange and put their offerings at a direct lower value than their fossil competitors, thus achieving very interesting margins for their shareholders. A similar phenomenon is also for those who have fields, such as Italy that is very rich in methane but does not want to exploit national resources: methane extracted in Italy is sold at international prices, or lower immediately, as extractive companies try to maximize the value of their assets, which the state maximizes when collecting royalties on Those fields, which are proportional to the market price. For years, environmentalists have been calling for it Drilling has been suspended Searching for and exploiting fields to reduce the supply of oil and gas and thus raise their prices: a goal that has been fully achieved.
The additional cost of $12 billion for renewables
Costs are also increased by CO2 emissions values, which in the final price account for about one-fifth of the increase. Summer fires in many young reforestation areas have destroyed forests that were planted to neutralize carbon dioxide emissions, and this is one factor driving up carbon dioxide prices. Meanwhile, beware. Among the raw materials, those used in the manufacture of solar panels and wind turbines are also increasing: renewable investments are no longer so convenient. According to analysts from Rystad With these costs to the supply chain, it is difficult to ensure climate targets. However, in this period, the curb on renewables is also attributed to the slow international logistics of components and then the delivery of the final product. The cost of PV modules has grown, but with a modest impact on the final cost of solar power plants, while more significant incremental costs are dictated by overall market conditions.
In Italy, the incentive for renewables also weighs heavily on the bill, which is added to the cost of the energy itself. Today, the incentive, which is 3 – 3.5 cents per kilowatt-hour, increases the cost per kilowatt-hour, not reduces it. Electricity consumers pay about ten billion dollars annually to those who produce electricity with wind, sun, water, etc. The most important component is the power calculation for the photovoltaic cells. Incentives for renewable energy costs have been added to the kilowatt-hour cost in order to make electricity consumers pay for it, to induce better consumer efficiency and to make tariffs transparent and responsive to their cost. As a solution, there are those who suggest hiding incentives for renewable energy in public taxes, shifting the additional cost generated by electricity consumers alone to all citizens and hiding the cost factors for green energy.