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CO₂ certificates still at a high & industrial electricity at a short-term low

The abolition of the EEG surcharge provides short-term relief for industry, but the quadrupled CO₂ price since 2018 remains a massive cost driver for energy-intensive companies. This article analyzes the current electricity price composition and shows why an improved CO₂ balance is now becoming the decisive factor for economic stability.

28.02.2023: According to a current Electricity price analysis of the German Association of Energy and Water Industries (BDEW), electricity prices for industrial electricity fell for new contracts at the start of the year compared to the second half of 2022. Accordingly, industrial electricity prices including electricity tax for medium-voltage supply also fell on average from 53.38 ct/kWh to 40.11 ct/kWh.

Lower taxes, levies and surcharges have an impact on industrial electricity prices

The average procurement value including grid fees and sales was 37.25 ct/kWh at the beginning of 2023, which is almost the annual average for 2022. The peak, which electricity prices reached in the second half of 2022 at an impressive 50.66 ct/kWh, appears to have been overcome for the time being. The elimination of the EEG surcharge since 01.07.2022 has also had a significant impact on the total electricity price for industry and commerce. While this figure was still 6.5 ct/kWh in 2021, the remaining electricity price components now total just 2.83 ct/kWh. Of these, the electricity tax is the largest factor at 1.537 ct/kWh. The concession levy, the KWKG levy, the §19 StromNEV levy and the offshore grid levy only play a minor role. However, experts believe that the downward trend has already bottomed out and that electricity prices for medium-voltage supply will rise again. 

Prices for CO₂ emission allowances remain high

In contrast to the price of electricity for industry and commerce, prices for CO₂ emissions certificates have not eased in the meantime. At the beginning of 2023, the price per tonne of CO₂ was € 90.07. This is only € 7.5 less than the all-time high in August 2022 and the extrapolated annual average for 2023 is already higher than in 2022. In any case, the price trend in CO₂ emissions trading that has been observed since 2018 appears to be continuing. Since then, the average price per tonne of CO₂ has risen from €15.82 to €81.81, quadrupling in just four years. This alone should be a sign for companies to reduce their CO₂ balance sheet to improve.   

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