Finland has become another country in the EU that is experiencing high electricity prices due to the lack of wind in Europe. The transition to gas generation for the production of electricity and heat has led to the fact that during peak hours the wholesale cost reaches almost 500 euros per MWh.
On December 18, the wholesale cost of electricity in Finland reached its maximum since the beginning of October, when the NPP power units were under repair. However, this time prices have risen for a different reason.
According to the NordPool exchange, the average daily price on December 18 will be 134 euros per MWh, and the peak price will be 493 euros. Above 200 euros per MWh, electricity is sold within seven hours.
Compared to December 16, prices have increased by about three times. At peak times — seven times. It is significant that in the neighboring Scandinavian countries, the wholesale cost of electricity, even during peak hours, does not exceed $ 71 euros.
The reason for the rise in price was the growth of consumption and windlessness. According to Fingrid, the capacity of wind power fell threefold — to 1 GW, while the capacity of cogeneration plants for the production of heat and electricity had to be almost doubled — to 3.4 GW. At the same time, production at the NPP remained stable — 4 GW of power was used.
Wind power makes it possible to reduce wholesale electricity prices in Finland and below zero. However, RES remain extremely unstable, which leads to price spikes. At the same time, the country has limited access to both electricity and pipeline gas imports. In 2022, due to sanctions and counter-sanctions, Finland stopped buying them in Russia.
At the same time, the exchange price of gas in the EU continues to stay around $ 450 per thousand cubic meters. Almost twice as high as the pre-crisis.