The EU, more divided than ever. Poor countries, the highest energy prices – Ziarul National

Authorities say high energy prices are market driven and market coupling. In contrast, on the EU map, high prices have plagued poor countries, while developed countries enjoy half prices. Although the orders of the Green Deal also came from the powerful states, the collateral victims are the second and third category populations of the European Union, whose economies collapsed after the disappearance of competitiveness.

A report by the European Union Agency for the Cooperation of Energy Regulators (ACER) shows that energy prices in 2023 remained high only in poor countries, while developed countries benefited from lower tariffs, albeit double those compared to 2020 , e.g.

With the exception of Italy, which has the highest energy prices in the EU, and Ireland, the highest prices are clustered in Eastern Europe. Thus, Romania had a price of 104 euros/MWh, with a decrease of 61% compared to 2022, as well as Bulgaria, Hungary, 107 euros/MWh, Slovakia, 105 euros/MWh, Poland, 112 euros/MWh, Croatia , 107 euros/MWh, or the Czech Republic, 101 euros/MWh. And this while Spain had 87 euros/MWh, France, 97 euros/MWh, and Germany, 95 euros/MWh.

The lowest prices were recorded in the Nordic countries, varying between 30 euros and 56 euros/MWh. Regarding the operation of the free and coupled market in the EU, the difference in tariffs between European states remains nebulous. In Romania, for example, imports decreased in 2023, amid the drastic reduction in population consumption and the closure of companies, which became, overnight, uncompetitive due to energy and gas prices. Which means we consumed what we produced. With very cheap hydro power, with relatively cheap nuclear power and with a minimization of coal production, expensive due to fines from green certificates imposed by the EU, prices in Romania should have been very low.

Negative prices for renewables

2023 saw an explosion of negative prices in the EU, says the ACER report. Although the rapid expansion of renewable production played a role, there could be other factors specific to 2023 that influenced this increase in negative prices, ACER believes. 27 out of 50 bidding zones experienced the largest amount of negative pricing from 2017 to last year.

“Negative prices result from the growth and market penetration of renewables, which is precisely why there is a need for continued integration of renewables and access to flexibility, such as demand response, for example. ACER’s future reports on cross-zonal capacity and market integration will further investigate the factors behind negative price increases,” the ACER report states. In fact, negative prices occur when the production of renewables is very high at certain times or on certain days, without corresponding to a commensurate demand, so imbalances are penalized. ACER specialists believe that a future solution would be to adapt the demand to the times of production of renewables, which is, in reality, true madness.

The interconnect plan, way too expensive

The integration of electricity markets in the EU guarantees the most efficient operation of supply systems and enables the increasing penetration of renewable energy, ACER believes. According to the European agency, price convergence is an indicator of market integration: now all EU borders are part of the forward and intraday market coupling, and further progress can be made by ensuring the maximum availability of cross-zonal capacity. “Interconnectivity in the EU is still lacking, and the targeted strengthening of the EU network will be a decisive factor in the success of the Green Deal”, the ACER report also states.