CO2 emission right prices, continuing their surge to reach a new record level of 47.11 euros per ton in trading yesterday, are prompting new conditions in the wholesale electricity market that further increase the operating cost of power utility PPC’s lignite-fired power stations, while, on the other hand, boost the revenue potential for the RES special account, used to remunerate RES producers.
Analysts have forecast even higher CO2 emission right prices, which, they believe, will stabilize at a level of no less than 45 to 50 euros per ton in the short term.
At the current CO2 emission right price level, the purchasing cost for every MWh of lignite-fired generation produced by PPC exceeds 70 euros.
On the other hand, besides boosting the revenue potential for the RES special account, this CO2 emission right price rise also promises to widen its surplus.
A 78 percent total of earnings hailing from CO2 emission right auctions is injected into the RES special account.
RES market operator DAPEEP plans to auction off a total of 20.86 million CO2 emission right units in 2021.
The operator has based the year’s RES special account revenue calculations on a CO2 emission right price of 37.45 euros per ton, a level that would rake in some 609 million euros for the account.
The latest CO2 emission right price rise, to 47.11 euros per ton, would provide 765 million euros for the RES special account this year, an additional 156 million euros.