Renewable capacity in Europe has increased in recent years, transforming the energy market. However, harsh winters and climate instability have a significant impact on prices and the stability of the energy system, or ‘dunkelflaute’.
Europe and the ‘dunkelflute’. In Germany, the Price of electricity shot up to €936/MWh due to the ‘dunkelflaute’ phenomenon. This German term means ‘dark calm’ and describes periods of low energy production due to lack of sun and wind, and usually occurs in winter. In fact, this situation has caused extreme fluctuations in the electricity market, such as the temporary increase in the cost of a megawatt that went from €107 in a single day, although prices quickly normalized.
How connected is Europe? Europe’s energy infrastructure is one of the most interconnected in the world, with one in every seven units of electricity sold through terrestrial and underwater cables. For this reason, the European Commission has developed transnational structures to reduce dependence on imports and guarantee equitable access to energy.
One of the most important projects in this line are the Trans-European Energy Networks. However, some tensions have already come to light, such as those expressed by Norway and Sweden, which have shown their concern about international connections and their impact on local markets.
Europe’s problems. Despite the good maintenance of the electrical networks, 40% of them are more than 40 years old, so the system presents failures. In addition, it must be added that within five years, energy consumption is expected to increase by 60% due to the electrification of transportation and heating.
On the other hand, it has more open fronts, such as dependence on Russian gas and the way Russia finds to evade European sanctions. For its part, the inauguration of Donald Trump also opens a new front for the EU, since he threatened with tariffs if it did not increase oil and gas purchases.
A complex panorama remains in Europe. On the one hand, the challenges posed by the ‘dunkelflute’, the aging of networks and international problems. On the other hand, the combination of electrical interconnection, investment in renewable technologies and the coordination of energy policies maintains the EU. From this moment on, it will be important to see what happens with infrastructure and how consumers are protected from market volatility.
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