Is Germany to blame for rising electricity prices in Europe? – DW – 12/19/2024

the Growing Impact of “Dunkelflaute” on European Energy Markets

Europe‘s ​winter is highlighting a ⁣growing challenge for the continent’s energy grid: “Dunkelflaute,” a period of low or no energy production from renewable‍ sources like solar and wind. This German term,which translates to “dark‌ doldrums,”‍ describes the situation when sunshine and wind are scarce,leading to reduced output from renewable energy facilities. The reliance on renewable energy sources such as solar and wind is increasing across Europe. while this shift toward cleaner energy is crucial for environmental sustainability, it introduces a new level of⁤ volatility ‌to the European​ energy market‍ [[1](https://tiomarkets.com/en/article/dunkelflaute)]. Traditionally, stable energy supplies were maintained by fossil fuel and nuclear power plants. However, their declining role means‌ that the energy system is more vulnerable to the ⁢fluctuations in renewable energy generation. “Dunkelflaute” frequently ‌enough occurs during‌ winter, a time ​when energy⁢ demand surges due to heating needs. This creates a challenging situation ⁣where energy production⁢ from renewables drops just as demand​ spikes. To compensate, ⁤other energy sources, often more polluting​ fossil fuels, ⁤have ‍to be engaged, leading to short-term price hikes and sometimes even the need for energy imports. While the immediate impact‍ of ‍”Dunkelflaute” on yearly energy averages‍ might​ potentially be limited, experts warn that its ​influence could increase in the ⁤future. Mathias Mier, ⁤an economist at the Munich-based ifo Center for Energy, Climate and Resources, emphasizes the ‌importance of proactive measures: “In future, it might have more ⁣impact, but it is the role of governments and markets to steer ‍the system ‍into directions that minimize that impacts of ‘Dunkelflaute’,” ​he says[[1](https://tiomarkets.com/en/article/dunkelflaute)].

German coal- and gas-fired power plants have‌ been ⁢running at full capacity ‍due to a shortage of renewables power ⁣this winterImage: Christoph Hard

Europe’s Power Struggle: ⁤Balancing national Interests with a Unified grid

The European ⁢Union’s vision of a unified electricity market is facing growing pressure as countries prioritize domestic energy security. This tension was recently highlighted when a surge in electricity ​prices in Germany triggered calls for protectionist measures from ⁤Scandinavian nations. While most electricity consumers in germany benefit from long-term contracts‌ with fixed prices,industrial manufacturers exposed to fluctuating daily rates felt the pinch during a recent period of high demand. A confluence of factors – supply and demand dynamics,‌ maintenance costs, taxes, and investments in renewable and backup technologies – contributes to electricity‍ prices. According to Conall Heussaff, a research ⁤analyst at the⁢ Bruegel ⁣think ⁣tank, though ‌short-term price fluctuations ‍occur, a clean energy ‍system like the⁤ EU’s is expected to lead to lower average prices over time.However, brief periods of price ⁣spikes on⁣ the free⁤ market are inevitable. One‌ such spike occurred​ in December 2023,⁢ when a⁢ surge in ‌German⁤ electricity⁢ demand drove prices to unprecedented levels. On ⁣December 12,the price per megawatt hour soared from €107⁢ ($112) to €936 before plummeting back down ‍to €115 ⁣the following day. This dramatic fluctuation⁢ sparked‌ outrage in ⁤Norway and Sweden,both major electricity exporters⁢ to germany.Norway’s energy minister, Terje Aasland, expressed consideration for cutting energy links with Denmark, while others in the country advocated for renegotiating⁤ existing connections with Germany and the ⁣UK. Similarly, Swedish Energy Minister Ebba Busch signaled willingness to consider a new underwater cable connection to Germany only⁢ if Germany restructured its electricity market to safeguard Swedish​ consumers’ access to affordable domestic energy. “Calling for more electricity nationalism is in direct conflict with the European Union’s ⁢goal of ‍an integrated electricity market,” ⁣emphasizes Heussaff, highlighting the potential harm ‍such policies could inflict on the system and the EU’s climate objectives.

A Deeply Interconnected Grid

Despite these nationalistic sentiments,the‌ European energy market is demonstrably interconnected. As Heussaff points out,‍ it is the second-largest synchronized⁢ grid‌ globally, after ‍china. Mathias ‍Mier, echoing this sentiment, notes that “almost every seventh unit of electricity is traded across‌ borders.” The​ European Commission considers developing this cross-border infrastructure a ⁤priority. Not only would it enhance‍ energy security by reducing⁣ dependence⁢ on imports, but it would also improve energy access and facilitate the ⁢EU’s​ Green Deal targets – a 55% reduction in greenhouse gas emissions by 2030 compared to​ 1990 levels, aiming to make Europe the first climate-neutral continent by ⁣2050.

Renewable Energy Leads EU⁢ Electricity Production,‍ but Grid ‌Upgrades Needed

Renewables ⁣soared in 2023, becoming the⁤ EU’s dominant source for electricity, accounting for 44.7% of the production ⁤mix. This represents a ⁤significant 12% jump compared⁢ to 2022, figures ⁢from Eurostat, the EU’s statistical agency, reveal. ‍ While ⁤renewables‌ lead the way, nuclear power contributes nearly 23%​ of electricity production and fossil fuels make up another 32%. Despite these positive developments, challenges ‍remain. The EU Commission warns that ⁣electricity consumption is projected to surge by approximately​ 60% by 2030, putting a strain on⁤ the existing grid infrastructure. Adding ​to the complexity, 40% of⁢ distribution ⁢grids are over 40 years old, struggling ⁣to cope with the increasing demand and ⁣the integration of more renewables, such ​as‍ rooftop solar panels. To ​tackle these challenges‌ and streamline necessary investments, the EU has developed the Trans-European Networks for Energy.These⁢ policies aim to simplify ⁢planning ⁣and ⁣permitting processes for cross-border energy infrastructure projects, including electricity⁤ transmission.

Enhancing the European Electricity Market: A Path Forward

Improving a complex system like the European electricity ​market is no easy feat. As​ experts point out, ⁤getting countries on board to agree on, invest in, and follow through on necessary changes presents‍ a significant hurdle. “Locational prices ⁣that reflect the ‍real demand-supply scarcity in combination with enabling demand response” are crucial for market improvement, according to Mathias‍ Mier. Conall Heussaff emphasizes the ⁣importance of price development. He observes that electricity ‌prices have evolved unevenly​ across europe, with regions blessed with renewable resources like wind, solar, or hydropower enjoying a ⁤price advantage. ⁣Achieving affordable energy across the⁢ continent is essential ⁣for competitiveness, he stresses. Heussaff⁢ suggests three key strategies to reduce⁤ prices: incentivizing demand-side flexibility⁤ to ‌adapt to changing conditions, improving‌ European coordination for cross-border investments, and⁣ increasing ⁢physical connections between ​countries to facilitate energy sharing.

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This is a well-written and informative ⁤article about Europe’s energy challenges, notably focusing on the impact of “Dunkelflaute”​ (a period of low renewable energy production) and the tensions arising from balancing​ national energy security with⁣ a unified ​European energy grid.



Here ⁢are some of the strengths of the‍ article:



* **Clear and concise:** The article effectively explains complex energy concepts like “Dunkelflaute”​ in an⁣ accessible manner.

* **Well-Structured:** The article logically flows from discussing the phenomenon ​of “Dunkelflaute” to highlighting ⁤nationalistic tendencies and the need for a unified grid, culminating in the EU’s ⁤plans ​for grid modernization.

* **Balanced perspective:** The article presents multiple viewpoints, including those⁤ of experts, policymakers, and concerned citizens, presenting a balanced perspective on the challenges involved.

* **Data-Driven:** ​The use of statistics from Eurostat adds credibility and ⁣supports the arguments made in the article.



​ Here are some suggestions for enhancement:



* **Expand on solutions:** While ⁤the ​article ⁣mentions the EU’s Trans-European Networks for Energy, it could benefit ​from a more‌ detailed discussion of potential⁣ solutions to the challenges presented. This could include exploring advancements​ in battery⁣ storage, demand-side management​ strategies, and smart ⁢grid ​technologies.

* **Visual Aids:** Adding more visuals like ‌graphs and charts could ​enhance ⁢the reader’s understanding of complex data points,such as Europe’s energy ‍mix or the fluctuating electricity prices.

* **Conclusion:** A ‍strong concluding paragraph could summarize the key‍ takeaways and reiterate the importance of⁣ addressing these challenges for Europe’s energy future.



this is a well-researched and⁢ insightful article that sheds light on a crucial issue facing Europe.‌ With a few tweaks, it could ‍be⁢ even more impactful.