Extra measures for Dutch electricity sector to become climate neutral by 2035

Last week, the average Dutch electricity price was 95.2 €/MWh. The sunny weather is causing prices to keep falling in the late morning and early afternoon. For some power plants it is therefore becoming increasingly difficult to run during peak hours. For flexible (gas) plants it is easier: these mostly started up at the beginning of the morning last week, went out in the afternoon, and started up again in the evening. On Sunday there was again a large amount of solar generation which, among other things, caused electricity prices in the Netherlands to end in negative territory. One hour closed at -100 €/MWh.

The gas prices dropped slightly again and closed below 40 €/MWh. May closed about one and a half euros lower at 38.4 €/MWh, and June dropped about 2 euros and closed at 38.5 €/MWh. CO2 also became slightly cheaper: the December 2023 contract closed about 2.5 euros lower at 87.4 €/EUA.

Dutch power prices for the coming months also dropped: May got 6 euros cheaper and closed at 90.3 €/MWh. June closed at 95.5 €/MWh.

Last Wednesday, the government announced that the Dutch electricity sector must be climate neutral by 2035*. Some measures that the government has in mind to achieve this goal include the realization of 3 GW of solar panels between offshore wind turbines, increasing the minimum CO2 price for the electricity sector and industry, and implementing DSR (demand side response) for end-users, which aims to reduce consumer electricity use in buildings during peak hours. In addition, more research must be done on the construction of nuclear power plants and SMRs (small modular reactors). For next year, gas became more expensive compared to short-term contracts.

The gas contract for 2024 closed 2 euros higher at 56.4 €/MWh. CO2 became almost 3 euros cheaper and closed the week at 91.5 €/MWh. The Dutch electricity contract became more than 2 euros more expensive and closed at 135.2 €/MWh. The CSS decreased by 1 euro to -5.3 €/MWh, while the CDS increased by 4 euros to 9.2 €/MWh.

*Source: Source Rijksoverheid: Extra pakket maatregelen dicht gat tot klimaatdoel 2030 | Nieuwsbericht | Rijksoverheid.nl

Weekly changes