How may we help you?
Give us a call, send an email or use our contact form. We will be happy to hear from you.
Corona Crisis in the Power Market: Studies Quantify Effects on Power Prices & Market Values
The effects of the corona crisis in the power market cannot be ignored: Declining demand, CO₂ price collapse and significantly lower power prices.
What is interesting now?
- How low can power prices fall?
- Effects on trading strategies and profitability of generation plants
- What does this mean in the short term (2020 – 2022) and in the medium to long term (until 2030)?
We provide guidance for these questions with our Corona short studies.
Who is the study of interest to?
- Power traders, procurement and distribution departments of energy supply companies
- RE project developers, offerers, banks, especially with regard to PPAs and §51 EEG
- Operators: Assessment of revenues and loss of revenues due to negative prices
- Project developer with focus on the innovation tender
What are we analyzing?
Power prices come under pressure due to the decline in demand for power and CO₂ prices, flanked by low gas prices. We quantify the developments these drivers can take in the short and medium term and what this means for the power market/power price using various scenarios that look at the pan-European energy market. Our analyses cover the period 2020-2022 / 2030.
What can already be deduced today?
The current decline in demand not only leads to lower power prices, but in our estimation can also lead to a significant increase in the number of negative power prices – the resulting revenue reductions for subsidised RE plants (§51) but also for merchant plants (continued operation) represent a concrete “corona risk”.
What do our brief studies provide?
The focus of the short studies is on the analysis of the effects of varying degrees of demand and commodity price declines in the current crisis. The core result is the future development of power prices and renewable energy market values from 2020 to 2022 and 2030 for Germany, respectively, as well as, on demand, a package for several EU countries.
What is the content of the studies?
- 2 scenarios with varying assumptions on power demand and CO₂ prices
- Core results: Annual power prices, annual RES market values, number of negative prices per year
Product info
We would be pleased to make you an individual offer on this topic. To do so, click on the button “Your inquiry” and enter your contact details. After receipt of your inquiry you will receive a confirmation of receipt by e-mail, which you can use to check the correctness of your information. We will send you a binding offer within one working day as a rule.
We need the data you provide to process your inquiry. Of course we will handle your data confidentially. You can find more information about the handling of personal data and information about your rights in our data protection declaration.