Wholesale electricity prices fall in December to their lowest level since May 2021

Wholesale electricity prices fall to lowest level since May 2021 in 2023
© jopix.de / Adobe StockMünster (renewablepress) - Wholesale electricity prices in Germany fell sharply at the end of 2023. In December 2023, the wholesale price on the spot market fell to an average of 6.9 cents/kWh of electricity, a decrease of 24 per cent compared to the previous month of November (9.1 cents/kWh). Compared to December 2022 (25.2 cents/kWh), the decline is almost 73 per cent. This is the result of an analysis of market data from the EPEX Spot Power Exchange by the Internationales Wirtschaftsforum Regenerative Energien (IWR).

At the end of last year 2023, wholesale electricity prices in Germany not only reached their lowest monthly level of the year in December, electricity prices also reached their lowest level since May 2021. The main reasons for the temporarily high increases in wholesale electricity prices were the massive outage of French nuclear power plants from the end of 2021 and the excessive price increases for gas following the Russian invasion of Ukraine (February 2022).

"Contrary to many fears, producer electricity prices on the exchange did not rise despite the nuclear phase-out in Germany, but fell significantly over the course of 2023," said IWR head Dr Norbert Allnoch in Münster.

Despite the decommissioning of German nuclear power plants, the low gas prices following the switch to a larger number of supply sources and countries, the repair and recommissioning of failed French nuclear power plants and the strong expansion of renewable energies in Germany have contributed to the easing of the electricity markets.

According to the data available to date from the Federal Network Agency (Market Master Data Register, as at 5 January 2024), around 18,000 MW of new wind (3,800 MW on- and offshore) and solar capacity (14,200 MW) was commissioned in 2023. This means that the annual electricity generation of two nuclear power plants could be offset in purely mathematical terms within a single year (2023).


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https://www.iwrpressedienst.de/bild/iwr/d80fe_Stromzaehler_AS_jopix.jpg
Caption: Wholesale electricity prices fall to lowest level since May 2021 in 2023
© jopix.de / Adobe Stock

https://www.iwrpressedienst.de/bild/iwr/d80fe_Deutschland_Strompreise_Grosshandel_2021_2023.png
Caption: Germany - Wholesale electricity prices from May 2021 to December 2023
© IWR


Münster, 11 January 2024


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