EWI: Nord Stream 2 Will Lower EU Electricity Prices
Oct. 23, 2018 | A new study has found that the Nord Stream 2 Pipeline will not only lower gas prices in Europe, it will also reduce wholesale electricity prices by up to 16 percent. This would amount to annual savings of up to €35 billion for European Union consumers, according to the analysis by non-profit research institute ewi Energy Research & Scenarios. Key industrial branches that rely heavily on gas, such as the chemical industry, would benefit most from these cost reductions.
The study follows up on a 2017 ewi report that concluded the additional gas supplies provided by Nord Stream 2 would lower EU gas prices and enhance competition by reducing the need for more expensive imported liquid natural gas, or LNG. The latest study explores how these lower gas prices would impact overall electricity prices, depending on possible LNG price scenarios. It also considers climate targets and the evolution of Europe’s energy mix, in which gas-fired power will likely play a greater role in setting prices as coal is phased out.
“We already knew that Nord Stream 2 increases competition among the sources of gas supply and therefore causes lower gas prices in the EU member states,” study leader Harald Hecking said in a statement. “Now we have shown that Nord Stream 2 also lowers European electricity prices, leading to significant savings for EU consumers.”
The study, published on October 10, 2018, was commissioned by Nord Stream 2. For more details, please find the full analysis here.