Over the past year, the price of electricity has risen considerably, especially in Europe.
According to analysts and economists, in the next quarter, a further increase in energy costs is estimated, which in the EU area can reach up to 40%.
In Germany, the wholesale price of electricity has risen by 60 percent since the beginning of the year.
While in Spain, prices have doubled over the past two years.
In the United Kingdom, on the other hand, the authorities have raised the ceiling on the prices that electricity and gas suppliers can charge.
In Italy, from the second quarter of 2020 to last August, the price of electricity went from 16.08 to 22.89 euro cents / kWh (“protected” service). An increase of over 42%.
Why are energy prices increasing
The increase in energy prices is mainly due to two factors:
The first is the increase in the prices of raw materials with which electricity is produced (oil, natural gas, etc.).
Since April 2020, the price of oil – which for example generates more than a quarter of the energy consumed in Europe – has increased by 200 percent. In other words, it now costs 3 times what it cost a year and a half ago.
While the price of Brent, the crude oil extracted from the North Sea, has gone from 24 to 73 dollars a barrel in the same time frame.
The second factor is the increase in the prices of permits to emit carbon dioxide (CO2).
Since the beginning of the year, the price of the permit to emit a ton of CO2 on the ETS has gone from 33.7 to 56 euros, increasing the costs of companies that produce energy.
And as the number of permits is reduced every year, this price will tend to rise in the future: it is estimated that it could reach 85 euros by 2030.
Dealing With Energy Price Rises
As a first response nearly all governments have introduced measures to contain the increases in bills: imposing a maximum price (by subsidizing the price difference) or reducing taxes related to the distribution networks.
These measures have proved not to be enough causing instead a reduction of revenue for public finances.
In addition, the measures are temporary and in the meantime energy prices continue to rise in much of Europe.
Energy efficiency instead has a direct, proven link with energy price.
Multiple Benefits of Energy Efficiency
When energy efficiency results in reduced consumption, it can reduce prices. This is the case especially if energy efficiency activities are sufficiently widespread and of a large enough scale.
In 2016, while energy efficiency continued to have gains, retail energy prices declined. Natural gas prices dropped 5 percentage points in 2016 after falling 6 percentage points in 2015.
Utilities that encourage energy efficiency amongst their customers can generate significant cost savings for themselves through avoiding infrastructural investment in energy generation and transmission and distribution infrastructure through delaying or deferring costly system upgrades.
Source: IEA (2019), Multiple Benefits of Energy Efficiency, IEA, Paris https://www.iea.org/reports/multiple-benefits-of-energy-efficiency
The Electrex solutions for energy efficiency
Since 1993 Electrex designs, develops, manufactures and markets, Made in Italy, instruments and software for energy measurement, management and control.
The Electrex solutions are used in the energy efficiency and energy automation applications for the industrial, commercial, residential and renewable energy sectors allowing a rapid return on investment.
The Electrex Monitoring networks are the ideal solution for energy audits, continuous monitoring (e.g. ISO 50001) and for energy efficiency projects (e.g. EU-Directive 2012-27 and White Certificates or Energy Efficiency Certificates).
The Electrex systems are modular and can expand over time thanks to the many possibilities of connecting the devices (Wi-Fi, RS485, E-Wi, ExpBus, Ethernet, NFC), and of display and management of the data collected.
With a single system, you can keep track of all energy carriers (electricity, gas, water, etc.), of environmental parameters related to them (temperature, humidity, luminosity, CO2, etc.), of process parameters (compressed air , calories, level, status, etc.) and automate the management of ON/OFF switches, automatic adjustments, remote management, alarms and more to achieve the main objective: to reduce energy costs.
Since 1993 Electrex designs, develops, manufactures and markets, Made in Italy, instruments and software for energy management and control.
The Electrex solutions are used in the Energy Efficiency and Energy Automation applications, for the industrial, commercial, public, civil, and renewable energy sectors allowing a rapid return on investment.
The solutions provided up to now allow the management of over 400,000 measuring points and more than 700,000 points are controlled via Energy Automation applications.
Electrex, one of the first companies to operate in these sectors, has acquired over the years a considerable experience and competence that few other companies can claim to have. With over 40% of the staff dedicated to R & D, we demonstrate our strong commitment to innovation and continuous improvement in order to anticipate the needs of our customers.