Energy of the future – from energy storage to dynamic tariffs
The dynamic development of renewable energy sources (RES) opens new prospects for enterprises. In the face of challenges related to connecting new renewable energy sources to the power grid, storage technologies are becoming an increasingly important element. Hybrid installations combining renewable energy sources with energy storage are developing at a fast pace. This solution not only increases independence from traditional sources and the national system, but also increases the security of energy systems. Thanks to this, the electricity produced from renewable energy installations at the peak of production (e.g. a photovoltaic installation during sunlight hours) can be partially used for current needs, and the rest of the produced energy will go to storage. This will make the owners of such sets more energy independent, regardless of the consumption profile, provided that a sufficiently large generation and storage capacity is built. An additional environmental advantage is the ability to obtain 100% green energy for your company.
Preparing customers' electricity systems to use dynamic tariffs will be an interesting topic in 2024. Although the launch of the Central Energy Market Information System (CSIRE) will not take place in mid-2024, as originally planned, this moment is getting closer. The introduction of a fully functional system will mean that consumers who consume even little energy will have the opportunity to use dynamic tariffs, in which the price will be different for each 15-minute delivery period. The introduction of purchasing automation supported by artificial intelligence to this model will allow for better management of energy flows, prediction of failures and optimization of deliveries. Artificial intelligence will begin to play an increasingly important role in the energy sector, from process automation to advanced analyses. This is not only efficiency, but also the key to understanding market trends. As energy networks digitize, new risks will emerge: cyberattacks. Investments in advanced security systems will become key to protecting critical infrastructure. Reliability of energy supplies will be a priority, and a key aspect in the near future will be the modernization of the network to strengthen its resistance to failures and the diversification of energy sources.
Dynamic price declines and global challenges. The electricity and natural gas market at the beginning of 2024
Current situation on the electricity market
In the first weeks of 2024, we observed declines in electricity prices on the Polish market, which is a continuation of the trend from the fourth quarter of 2023. On December 29, 2023 (the last working day of the year preceding the delivery year of 2024), the price of the annual BASE_Y_24 product was set at PLN 490/MWh. It is worth noting that the minimum energy price achieved in December last year was approximately PLN 471/MWh, which is the lowest level since November 24, 2021.
In the case of other products on the futures market (quarterly, monthly and annual with delivery in subsequent years), we also recorded price declines. Futures contracts currently available for purchase for delivery in 2024 include those for the second, third and fourth quarters, as well as all monthly (except January) and seasonal and weekly contracts. The table below presents a comparison of exchange prices on January 17, 2024 to prices quoted on December 29, 2023 on the Polish Power Exchange (TGE) for the main futures products and SPOT prices (Day Ahead Market) in the TGe24 index.
What’s going on on the natural gas market? Prices, trends and events in Q3 2023
September 2023 was a month full of events on the Polish gas market. We are approaching the key autumn-winter period of the year. This is statistically the most expensive season due to the increased demand for gas for heating purposes.
One of the main events on the gas market in September was the threat of a strike by employees of the LNG sector in Australia (concerning Chevron), which, if production was completely suspended, could affect approximately 7% of the global LNG gas supply (liquefied natural gas). ). Fortunately for customers, the LNG loading schedule was not disrupted. Ultimately, the strike ended after Chevron and Offshore Alliance accepted new proposals regarding employment conditions. These events, although they did not directly concern the Polish market, significantly contributed to price volatility on the Dutch TTF exchange, which is a reference point for European countries. Prices ranged from EUR 47.65/MWh to EUR 53.10/MWh, which means a volatility of 11%. In summary, the Chevron workers' strike had a potential impact on global LNG supply and gas prices, but ultimately did not significantly impact the market due to the quick resolution of the conflict.