CS Energy Power July 2013 |
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The German electricity market is in a state of transition: following the liberalisation of the market at the end of the 1990s, the ambitious goals of the energy reforms (“Energiewende”) are now forcing rapid changes. However, while the intensified expansion of renewable energies is driving end-consumer prices to new record levels, wholesale prices have plummeted. In this study we take a closer look at the interplay of supply and demand on electricity exchanges, and explain why a coal price recovery and a rising carbon price could slow the downward trend of electricity prices on the exchanges, at least temporarily.
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