Winter is already in Europe. Prices have returned to the forgotten 300 euros /MWh

Electricity production in the week starting November 21 is growing, with thermal plants leading the way. The share of gas is still moderate, and there is a decrease in wind power plants. The share of nuclear power plants remains unchanged. However, it is safe to say that consumption has shrunk both on the business side and on the household side. With the end of the warmer November weather, high prices return. Slowly and slowly the value of the European electricity exchanges crossed the level of 250-260 euros per MWh. Thus, the beginning of the new week started with values ​​of just over 300 euros per MWh.

The optimists, so focused on the temporary calming of the markets, lost their direction. The problem is that their mood spilled over to the more pessimistic market participants. Against this background, the sobering data of the stock exchanges, the economy and the financial initiatives of the central banks continue to speak of an energy crisis in the distance of a sufficiently long period.

Such a truth is inconvenient for politicians, especially since it has already drained millions from state budgets. It is inconvenient because of rampant inflation, and because it requires more than populism.

European electricity exchanges in the “day-ahead” segment started last week with prices reaching 240 euros per MWh. With the onset of worse weather, levels began to change in an upward direction. However, with a delivery day of November 22 overall, European electricity exchanges in the day-ahead segment saw a decline.

The word deindustrialization takes on new dimensions. Especially against the background of the looming trade war between the US and Europe, which was already written about in Politico. It’s no longer just about losing competition. It’s not just a loss of supply chains. It is about the danger of losing democracy as a result of the ongoing energy crisis on the one hand and the impact of the war in Ukraine on the other.

The energy crisis in Asia is a bit different – ​​on the one hand it is a victim of COVOD-19, though not only. The deterioration of relations between the US and China is reflected. India has so far managed to maintain a balance. In Europe the situation is a little different. The anti-inflation law, which is due to take effect from the beginning of next year in the US, is preparing to take over the European economic achievements, and with it the values, the pride of the democratic progress of the Old Continent. Europe, for its part, has thus clung to the countless sanctions, which, in a package with the green deal, can destroy everything achieved in decades. The warnings of business circles are becoming more frequent, but the European institutions still ignore them. Sanctions and division carried over to the national level heighten tensions among society, but create a desire, and an opportunity to govern on the edge of democracy. This, as well as forecasts for a longer-than-expected crisis, require other types of solutions.

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