Following an analysis of the cause of record-high electricity prices in August, European power market Nord Pool is recommending market participants review their strategies for offering energy production to the market.
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Today's record high electricity stock exchange price is due to a number of factors coinciding at the same time and all options to increase imports are exhausted, Nord Pool said on Tuesday.
The market price of electricity will come to fluctuate to a greater degree as countries switch to renewable energy and close coal and oil shale power plants. Kalev Kallemets, CEO of nuclear plant project company Fermi Energia, predicts that prices will continue to rise, while Estonian transmission network operator Elering disagrees.
The past week has seen the price of electricity on the Nord Pool exchange reach €100 per megawatt-hour for at least a few hours every day. The price climbed to €255 two weeks ago. Cheaper times see a megawatt-hour of energy cost €30-40.
However, prices also move down and overproduction of Nordic hydro and wind energy saw the price dip into the red last July.