The energy market crisis is not bypassing anyone - rising electricity and gas prices and energy-saving tips from all sides. Hardly anyone knows as much about the energy markets as energy suppliers. That's why we asked. The new episode deals with the many causes of the energy crisis and the consequences for consumers, the market mechanism, the security of energy supply through renewable energies and the development of energy prices.
What factors have caused the energy crisis and what does it mean for consumers?
Frank Kalliora, Department Head of Energy Trading at Prokon, Germany's largest energy cooperative, has shed complete light on the causes: long-term and short-term, domestic and foreign; political and economic. It becomes clear that the energy crisis has a variety of causes. The factors have resulted in a sharp rise in energy prices. In addition, energy suppliers are having considerable difficulty obtaining the energy they need on the markets. One reason for this is that in some cases traders were no longer able to submit bids. This has led to a situation in which end consumers have had to accept substantial price adjustments.
How is the slowdown in natural gas supplies from Russia related to more expensive green power prices?
Due to the slowed volumes of Russian natural gas, prices are rising not only for natural gas tariffs, but also for biogas and green electricity. Thomas Weber, Managing Director of ESDG, explains that biogas is a substitute for natural gas, and is therefore directly affected. The rising prices for green electricity are explained by the merit order principle. The most expensive power plant and the last kWh form the market price - which is currently the power generation by gas.
Why pay for green electricity and biogas at the price of fossil fuels at all at the moment?
Genuine green energy additionally promotes the energy transition. Certified green electricity with Grüner Strom-Label and certified biogas with Grünes Gas-Label include a subsidy component. This promotes the expansion of renewable energies with every kilowatt hour of energy consumed. This is not only currently an important factor, but should always be the main quality feature when selecting an energy tariff.
How secure is the energy supply from renewable energies?
Florian Henle, founder and managing director of the eco-energy provider Polarstern, has stated that electricity generation is safe regardless of the type of electricity. Electricity from various energy sources flows into the electricity lake, from which all households are supplied. However, by purchasing green energy, one has an influence on how this lake is filled. Although there are volatile renewable energy sources, they usually balance each other out and can be planned very well in some cases. Due to the low operating costs of renewable energies, lower prices can be expected in the long term.
How will energy prices develop?
No one can foresee the future, but the Competence Center Manager Procurement/Trade from NEW, Michael Ramczykowski, gave his assessment. This depends on many factors, such as winter temperatures, the relief offered by politicians, the European energy markets and the development of the Russian war on Ukraine.
Are you also wondering about the energy crisis? Send us an email at podcast@gruenerstromlabel.de and we'll include your question in the next episode!
