BAKU, Azerbaijan, July 25. High power prices will remain in Europe until mid-2020s, Trend reports with reference to Wood Mackenzie.
“The war in Ukraine has worsened conditions in an already constrained energy market, lifting power prices to above 200 EUR/MWh in many European markets. High power prices remain until the mid-2020s as policy uncertainty and sanctions on Russian energy add a risk premium to fuel costs. Across Europe’s largest markets wholesale power prices do not fall back below 100 EUR/MWh until 2027,” reads the latest report released by the company.
The report reveals that front-loading of renewables, ambitious green hydrogen plans and increasingly attractive decarbonised gas options (particularly hydrogen and CCUS) drive a marked decline in unabated gas generation across Europe.
“Price-induced demand destruction dampens market volumes in 2022. But in the longer term, we see very positive demand growth in the EU27+UK region, with market size up 84 percent to 5,869 TWh by 2050. Green hydrogen and electric vehicles will account for 16 percent and 10 percent of 2050 power demand, respectively,” says Wood Mackenzie.
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