e2m expects electricity prices to rise significantly in the new year

Recent reports of preventive power plant shutdowns in France have led to a significant increase in electricity prices to up to EUR 680/MWh. Due to the interconnectedness of the European electricity markets, electricity prices in Germany have also risen to up to EUR 400/MWh for the coming month of January. The first quarter of 2022 is valued at up to EUR 380/MWh.

The shutdowns in France are to last until at least January 23, 2022, with an option to extend them until March 2022. Cold temperatures in the first ten days of January (source: SMHI) could extend these measures.

In line with the very high price expectations for the coming year, we assume that price fluctuations on the day-ahead market will also be very high. This will result in high additional revenue potential for flexibility providers. Optimized plants in particular, as well as balancing energy participants, will be able to contribute significantly to grid stability and benefit from this to the same extent.

Flexibility remains the hardest currency on the energy market. Let us optimize your business and benefit from the market opportunities!

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Anne Walter

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