02.12.2021

It is worth knowing how much you will pay for participating in the CO2 emissions rally

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Arkadiusz Somnicki

Member of the Board

We are anxiously looking at the list of CO2 emission contracts every day. Today (02/12/2021) the price of CO2 exceeds 79EUR, three times more than two years ago. We know that the current situation will affect our wallets next year. In homes, businesses and the entire economy.

Fast calculation. Assuming the EUR / EUR exchange rate at 4.59 PLN / EUR and the approximate influence of the CO2 price on the electricity price at 0.8, we get the approximate cost of CO2 in PLN for each MWh of energy we consume - 290 PLN / MWh.

To illustrate how high this level is, it is enough to compare the above-mentioned value to current energy prices in houses 300 PLN / MWh. There is no need to say - the value of 97% (290/300) is impressive. To this, let's add the cost of generating energy, certificates, excise duties and we will get the current sales prices for next year ... Entrepreneurs who did not manage to contract energy earlier receive prices from sellers for 2022 at the level of PLN 600 / MWh and higher.

Why are the prices of CO2 emission allowances so high? Above all, Europe is entering the winter season, and national economies are recovering from covid dormancy. Therefore, the demand for energy is increasing, for the production of which other power units are launched, including coal-fired ones (their operation depends on the purchase of CO2 emission permits). Carbon prices are also not helped by the announcement of an even more restrictive EU climate policy and by allowing financial institutions to buy and sell emissions as part of speculative trading.

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Webinar – Discover savings: strategies to reduce energy and gas costs

Are you an entrepreneur? Are you interested in securing energy and gas prices for 2025 and subsequent years? Are you watching the situation on global markets with concern and wondering how the possible development of the geopolitical crisis may affect media prices?

Enfree Webinar - Discover Savings: Strategies to Reduce Energy and Gas Costs.

June, 6th 2024 | 11:00 - 12:00


Register today! Enfree Webinar Registration

Arkadiusz Somnicki and Adam Wlizło will present proven strategies and innovative solutions that generate real savings.

The agenda includes,among others:
💡Preparation for 2025 - contract, termination, change of seller.
💡Stock market purchase model – how is it better than a fixed price?
💡The future of energy prices: the role of photovoltaics in shaping the market.
💡Q&A session.

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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.

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Current situation on the electricity market

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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.

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