By Blackout News

In order to conserve gas reserves, coal-fired power plants from the reserve or even coal-fired power plants that have already been shut down are to be returned to the grid. However, Economics Minister Habeck’s plan for this cannot be implemented as quickly as he would like. Most of the power plant operators have already laid off their staff and largely used up their coal reserves before the shutdown. As a result, gas-fired power plants produced more electricity in May and July than a year earlier. At the same time, electricity prices on the electricity exchange are exploding. Is there now an electricity crisis after the gas crisis?

Gas-fired power plants produce record amounts of electricity despite gas shortages

The CEO of a copper smelter operating under the name Aurubis comments on the current situation as follows: “How can you explain to the citizen that he should save or freeze when at the same time billions of cubic meters of the valuable raw material are burned completely unnecessarily. The continuation of the avoidable conversion of natural gas into electricity at a high level is irresponsible, if not punishable.”

Coal-fired power plants are not getting back to the grid fast enough

According to several energy experts, the delayed ramp-up of coal-fired power plants from the reserve due to several circumstances is already contributing to the next crisis. While the citizens of the country are looking ahead to the next gas bill and are already preparing with fan heaters not to freeze in winter, the next fiasco threatens on the electricity market. Javier Blas, an expert at bloomberg, comments: “The situation on the electricity market can give you a hell of a fear.” On the electricity exchange, electricity for delivery for the fourth quarter is already traded for 600 euros per megawatt hour (Handelsblatt: 26.07.22). This is 580 percent more than in the previous year. Even electricity, which will not be delivered until 2023, already costs 450 euros per megawatt hour, a tenfold increase from the previous level. “The price increase is really breathtaking,” says Lion Hirth, energy expert at the Hertie School: “This has never happened before in the history of the electricity market.” The electricity crisis is already looming.

Failure of French nuclear power plants drives prices across Europe

The failure of many French nuclear power plants also plays a role in the price increases. The experts cannot estimate how long the price level will remain at this level. However, prices are also driven by the planned shutdown of German nuclear power plants and the delayed start of coal-fired power plants. With the high gas prices, experts expect that the electricity price for the consumer could rise from currently around 35 cents in a short time to one euro and more per kilowatt hour.

Energy expert Alexander Weiss, Senior Partner of the management consultancy McKinsey, comments on the situation on the electricity market as follows: “It is possible that we could still get an electricity shortage in Germany before a gas shortage.”