European Electricity Prices Skyrocket 6x Over 2020 Price

[JohnyMac]

With Russia amassing troops on the Ukrainian border, the European Union (EU) is facing electricity prices more than 6-times prices in December 2020. Specifically, 128.00 (euro)  megawatt-hour this year Vs. 20.00 (euro) megawatt-hour in 2020.

Why is there a supply shortfall?

Gas inventories in Europe in December were the lowest on record for the time of year. China, which is by far the biggest consumer of energy and commodities in the world, has ordered state-owned companies to secure supplies at all costs. Prices in Europe would need to stay high to attract cargoes of liquefied natural gas away from Asia, where China is stockpiling to power its economy and build reserves for winter. Earlier in 2021 Norwegian gas flows were lower than average during maintenance work at its giant fields and processing stations, and supplies from Russia were limited while it was rebuilding its own inventories. Russian President Vladimir Putin calmed the gas market in October by offering to help stabilize the situation, saying Russia could potentially export record volumes of the vital fuel to Europe this year. More recently, though, a key new avenue for Russian exports to Europe has become complicated by geopolitics. - The Washington Post

OUCH!. So what do you think the EU/NATO will do when the Ruskies cross over into the Ukraine? I suspect nada. Of course there will be a lot of saber rattling but that is about it. Great Britain's Prime Minister Neville Chamberlin, Hitler, and Poland, comes immediately to mind. Ahhhh, Those who fail to learn from history are doomed to repeat it.- Winston Churchill

Economically speaking, how will Russia invading the Ukraine affect the EU? The United States? China? Just food for thought.

[pkveazey]

I don't doubt for a minute that the Electricty prices have skyrocketed in Europe. The funny thing about Electricity is it only has value when it is being used. If nobody turned on anything electrical in their home or business, then Electricity would be worthless no matter how much of it the power companies made. Yea, I know, I look at the world through a strange pair of glasses. I try to break everything down to its simplest form. Think about a Home Solar system. The moment the Battery system is fully charged, all that extra sunshine is wasted and even though the Solar Panels are still making electricity it is wasted because it isn't being used until you turn on some device that starts to deplete the batteries. It took me quite a while to realze that when the SHTF, I am going to need a way to make Electricity. Yep, I was a bit like most people and just took it for granted that there would always be electricty. I sure am glad I woke up and smelled the Electricity.