The Financial Times reported that electricity prices in the European Union (EU) have quadrupled due to rising gas costs.
Accordingly, on July 5, electricity prices in Europe hit an all-time high due to the increase of natural gas in the context of supply instability in Russia.
German base load power for delivery next year – Europe’s standard valuation measure – traded at $334 per megawatt hour (MWh). This number has surpassed the previous record set in December 2021. Last July, electricity price was just over 83 USD/MWh.
The Financial Times adds that electricity prices in France have doubled to $377/MWh since the beginning of the year.
Electricity prices are currently influenced by the cost of natural gas, which is used to generate electricity. Gas prices in Europe exceeded $ 1,800 per thousand cubic meters for the first time since early March on July 5, as oil and gas workers in Norway went on strike to demand higher wages, leading to a drop in output.
According to the Financial Times, the power shortage has worsened after a series of French nuclear plants had to temporarily close for maintenance. Therefore, neighboring countries have consumed more gas to produce electricity for their own country.
In addition, the Nord Stream 1 gas pipeline between Russia and Germany will also be closed for maintenance next week. Moscow had to reduce flow through the pipeline by 60% last month because of technical problems caused by Western sanctions, but many in the EU are concerned that after the planned shutdown, the outflow This will not be opening the return valve.
In the wake of the energy crisis, Germany launched the second phase of its three-tier emergency plan last month. In the third phase, local authorities will have to distribute gas to households and industrial zones. A housing management board in the Saxony region has just announced the distribution of hot water use for residents. The city of Hamburg has also issued a similar warning.
T&G Import-Export Joint Stock Company
Address: 352 Hue Street, Le Dai Hanh Ward, Hai Ba Trung District, Hanoi
Hotline: 02473010868
Email: hrm@tginterjsc.com
Website: http://tgimportexport.com
