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Powering Europe - European Wind Energy Association

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fiGURE 8: aVERaGE wholEsalE PRiCEs PER CoUntRy foR2020<br />

Wholesale price [€ cents per kWh]<br />

20<br />

18<br />

16<br />

14<br />

12<br />

10<br />

8<br />

6<br />

4<br />

2<br />

0<br />

Austria<br />

Belgium<br />

Czech<br />

Wholesale prices<br />

Denmark<br />

In both scenarios and in most countries, input data<br />

assumptions are made so that the amount of new deployment<br />

of wind energy is larger than the increase in<br />

power demand, and that wind energy will replace the<br />

most expensive power plants. This will lower the average<br />

price levels.<br />

In the EU the expected price level for 2020 is around<br />

8.9 €cent/kWh for the Reference Scenario (Figure<br />

8), with a significant higher price in the Czech Republic,<br />

Poland, Hungary and Slovakia. In the latter countries,<br />

the average price is about 50% higher than the<br />

EU average. The main reason for their high average<br />

price levels are that these countries base their generation<br />

very much on coal power, which means there<br />

are relatively high carbon costs. In these countries,<br />

some old power plants are very inefficient and therefore<br />

emit significantly more carbon. In addition, for<br />

Finland<br />

France<br />

Germany<br />

chApTEr 6 themeritordereffectoflarge-scalewindintegration<br />

Average wholesale prices in 2020<br />

Hungary<br />

Italy<br />

Netherlands<br />

Norway<br />

Poland<br />

Portugal<br />

Slovakia<br />

Slovenia<br />

Spain<br />

Sweden<br />

Reference 2020<br />

WIND 2020<br />

Price difference<br />

Switserland<br />

the Czech Republic and Poland, power demand in<br />

the Reference scenario exceeds the country’s power<br />

capacity. Highly expensive technologies therefore<br />

have to produce power in order to cover demand.<br />

These two countries are net importers of electricity,<br />

mainly from Germany and Slovakia. As a consequence<br />

of its large amounts of exports to Poland,<br />

the Czech Republic and Hungary, Slovakia has also<br />

become a high price region. And Hungary also lacks<br />

its own generation capacities, so it imports from<br />

high price regions like the Czech Republic and Slovakia<br />

(see more details on page 150, Trade flows).<br />

In the <strong>Wind</strong> scenario, average prices are about 18%<br />

lower than in the Reference scenario. The EU average<br />

price is around 7.3 €cent/kWh in the <strong>Wind</strong> scenario.<br />

Again, the Czech Republic, Poland, Hungary and Slovakia<br />

have higher prices than the EU average, but only<br />

around 15% higher, which is a smaller price difference<br />

than in the Reference scenario.<br />

Estonia<br />

Latvia<br />

Lithuania<br />

UK<br />

100<br />

90<br />

80<br />

70<br />

60<br />

50<br />

40<br />

30<br />

20<br />

10<br />

0<br />

Price difference in %<br />

149

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