Electricity prices likely to fall again but remain a competitive disadvantage for German economy – Commerzbank

Strategists at Commerzbank analyze the long-term outlook for German power prices.

Electricity prices even threaten to rise in the coming years

Despite the recent fall in electricity prices, they remain high by both historical and international standards. Given the high costs of the energy transition, prices even threaten to rise in the coming years. 

After the end of the transformation, however, the very low (variable) costs of generating ‘green electricity’ give reason to hope that costs will fall, even if higher system costs, such as for reserve capacities, will probably offset a considerable part of this advantage. 

Electricity prices are likely to fall again, but remain a competitive disadvantage for the German economy.