Dear Sir or Madam,
Last year, Germany imported fossil fuels worth €76 billion, mainly in the form of oil and natural gas. These energy sources are almost entirely imported.
Greater independence from these greenhouse gas-intensive fuels is therefore desirable from both a global political and economic perspective.
However, the German electricity grid must be made more flexible, even though it had to cope with 32.8% less electricity last year than in the peak year of 2017. Although it is significantly less vulnerable than the Spanish electricity grid, for example, thanks to redundant safety mechanisms, blackouts such as those experienced on the Iberian Peninsula last week cannot be completely ruled out.
The expansion of renewable energies poses a particular challenge. According to the photovoltaic industry association BSW Solar, growth of 17.5 gigawatts is expected this year, which would mean that PV would overtake coal-fired power generation.
Currently, plants with a capacity of 105 gigawatts are in operation in Germany, and according to the federal government’s plans, a total installed capacity of 215 GW is to be achieved by 2030.
According to BSW Solar, the five million PV systems installed last year alone reduced CO2 emissions by a total of 50 million tonnes. If expansion doubles, approximately 100 million fewer emission allowances will be required annually in the German energy sector.
The prices for these emission allowances in the European Emissions Trading System (EU ETS I) ended last Friday’s trading week with a gain for the fourth week in a row. The benchmark contract closed the trading week with a gain of 3.5% just below the 69 euro mark, after resistance around 50 cents above that level proved stable.
After lower auction volumes on the European Energy Exchange in the last three weeks due to the holidays, a total of 11,343,500 EUAs will be auctioned this week, representing an increase of 32.5% compared to the previous week.
| Instrument | 25/04/25 | 02/05/25 | Change |
| EUA (December-25-Future) | 66.43 EUR | 68.76 EUR | +2.33 EUR |
| nEZ (national Emission Allowances (D)) | 55.00 EUR | 55.00 EUR | +0.00 EUR |
| UKA (December-25-Future (UK)) | 47.46 GBP | 49.63 GBP | +2.17 GBP |
| UK Natural Gas (December-25-Future) | 89.82 GBP | 91.72 GBP | +1.90 GBP |
| ICE Brent Crude Oil (December-25-Future) | 64.40 USD | 60.68 USD | -3.72 USD |
| EURO (Forex) | 1.1363 USD | 1.1300 USD | -0.0063 USD |
(EUA. UKA, Natural Gas, Crude Oil and Euro Currency shows day-end-exchange quotes of the benchmark contract. This market information has just an informational character and are no advice or offer to trade emission allowances or their futures and options. If you want to unsubscribe, please reply to this mail.)
Please call our international carbon desk if any further questions exist: +49.2831.1348220.
With kind regards,
Your Advantag – Team