A significant discrepancy is shown current prices in the wholesale markets of Europe in 2022 in terms of the overall empirical increase driven by the Russian invasion of Ukraine and subsequent launch natural gas price on an astronomical level.

The range of increase, according to the review of the European electricity market for 2022 in the report of the European Regulator (ACER), ranges from 51% to 155% compared to 2021 and prices from 137.26 euros / MWh to 306.15 euros. euro/MWh. The Greek market is among the countries with the highest prices after Italy and Malta and some regions of France, and it could not be otherwise, since, as ACER points out in its report, the factor that influenced the growth was the heaviness of natural gas in local energy portfolios.

IN Hellas The share of natural gas in the electricity generation mix was 38% in 2022 compared to 41% in 2021. The wholesale price on the Day Ahead Market (DAM) in Greece was 278 EUR/MWh in 2022 and increased by 139%. compared to 2021, according to the ACER report.

The highest price was recorded in Italy at €306.15/MWh, followed by Malta at €295/MWh, while the price also reached €280/MWh in parts of France due to the exit of a large number of nuclear power plants from the system. reactors. The drought in July last year and the decline in hydroelectric power production also weighed on prices in some Central European markets. The lowest prices were recorded in the Nordic countries due to the high share of hydropower in the fuel mix.

The ACER report for France deserves special attention, where on April 4, 2022, the day-ahead market price ceiling reached 3,000–4,000 euros/MWh. Significant growth in 2022 was also seen in the futures markets, especially for commodities with delivery in the autumn and winter months. An illustrative example is France, where in August forward prices for monthly products reached a level of up to 1,500 euros/MWh.

A sharp increase in electricity prices was observed in all markets due to record prices for natural gas, ACER notes.

In addition to high prices, Russia’s invasion of Ukraine has also reduced demand for electricity and increased CO2 emissions due to increased production from coal, which has become cheaper than natural gas. Overall, electricity demand in Europe decreased by 4.6% in 2022 compared to 2021. But in the fourth quarter of the year it was five times higher. Demand fell from 1.8% in the first quarter to 9.5% in the fourth quarter compared to the same quarters in 2021. Hydro generation fell by 16%, while wind and solar increased by 8% and 25%, respectively.