The most expensive kilowatt of electricity in the EU could be paid by Croats and Slovenes, SEE Energy News
In the middle of the decade, Slovenian and Croatian electricity will be the most expensive in Europe due to rising gas, coal prices and CO2 (carbon dioxide) emissions.
This information is in the analysis of the British independent business research agency ICIS (Independent Commodity Intelligence Services).
Specifically, they point out that one third of electricity generation capacity in Slovenia and Croatia is based on fossil resources, so an increase in CO2, gas and coal emissions will be the most important factor in bidding electricity prices in both countries. According to this analysis, electricity prices in both markets should remain below $ 50 per megawatt hour (MWh) this and next year, according to Poslovni dnevnik.
They will be helped by the price of CO2, which is estimated to be less than € 27 per tonne of emissions. Such a price will boost the cost of producing electricity from lignite in Slovenia and gas in Croatia.
However, according to ICIS, by 2025, the price of CO2 will increase to about 35 euros per tonne, which will increase the cost of generating electricity in thermal power plants, so that electricity prices will exceed 75 euros per MWh. Forecasts have taken into account that installed lignite-based 844 MW in Slovenia will operate by 2030.
They also considered the 10-year plans of the network operator. But it is cautioned that leaving the production of lignite energy immediately would make electricity more expensive.
British energy experts estimate that by 2030 it is not certain that there will be significant increases in renewable energy capacity in these countries and that this increase will have minimal impact on total energy production. In particular, in 2030 the sun and wind are expected to account for four percent of total electricity production in Slovenia and 15 percent in Croatia.
Hydroelectric power plants are important in both countries, especially in Croatia, so the price of electricity will also depend on hydrological conditions. On the other hand, due to more expensive electricity, coal is expected to increase from the current 35 percent to 39 percent in 2030.
They add that Slovenian electricity exports to Italy will also grow at the end of the decade due to increased transmission capacity and closure of Italian coal-fired power plants.