The timing of the Russia-Ukraine crisis, coinciding with the ongoing energy crisis affecting Europe, including Greece, is proving detrimental to the recent de-escalation of record-level energy prices, especially in central European markets, where wholesale electricity prices have fallen below 100 euros per MWh for the first time in months.
Concerns over a possible Russian invasion of Ukraine have prevented markets from easing. Natural gas prices yesterday rose by an average of 14 percent to register a two-week high of 88 euros per MWh. As a direct consequence, electricity prices increased today following a downward trajectory in recent weeks.
In Germany, wholesale electricity skyrocketed 51.63 percent, in a day, to 155 euros per MWh. France registered a 3.3 percent increase to 193.44 euros per MWh. In the Netherlands, wholesale electricity rose by 14.98 percent to 202.1 euros per MWh, and, in Spain, the price of wholesale electricity increased by 9.07 percent to 199.94 euros per MWh.
A Russian invasion of Ukraine, which would disrupt Russian gas supply to Europe, would push up natural gas prices to new record levels exceeding records set in December.
Russia is Europe’s biggest natural gas supplier, covering 40 percent of the continent’s natural gas imports, of which 30 percent is transported through pipelines running through Ukraine.
The Russia-Ukraine crisis is also impacting oil prices, now close to 100 dollars per barrel.