I have green electricity from the Netherlands, why is my energy bill going up? – Radar
Electricity prices have risen sharply. Not only do people pay a lot more for ‘grey’ electricity, but also those with Dutch, green electricity. How is this possible? Wind and sun didn’t come together at once, did they?
Same flow
First everyone gets the same power from their socket, green from you have a contract for gray from the same power. The difference is in the certificates. A Guarantees of Origin (GoO) is proof of energy from an issued source. 1 GoO proof that 1000 kWh of sustainable energy has been generated for 1 year. When you have a contract for one hundred percent Dutch solar and wind energy, this means that sustainable energy is generated for you.
Short and long term contracts
Energy becomes different energy exchanges. The energy company buys these exchanges. This can be in the long term, but also more often in the short term. These are the ‘spot markets’.
Last addition to energy mix choice the price
The European Power Exchange (EPEX) is energy for the day. For each hour, supply and demand are looked at. It is then examined where this current comes from. When the sun shines on a Sunday afternoon, the electricity price can even fall below 0 euros.
But if the sun doesn’t shine, the energy mix has to be topped up by another source. The last bit of this mix is often gas, these power plants are easy to turn on and off. But the latter also decides the price.
Suppose 80 percent of our energy demand can be supplied by wind farms for 35 euros per megawatt hour and 20 percent is supplied by gas-fired power plants for 350 euros per megawatt hour. Then both the wind farms and gas-fired power stations will receive 350 euros per megawatt hour.
Uncertainty about contracts
The contracts of energy cooperatives and suppliers are not public. As a result, no profit is known from the enormous growth. A number of operators in the renewable energy market will see huge developments from the rising prices, but those who have concluded a contract for purchase and supply for several years will notice the increased prices.