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Electricity Price Forecasts 2024

Client

vbw – Bavarian Industry Association

Year

2024


Although price declines are expected from 2024 onwards, wholesale energy prices will remain significantly higher than the 2019/2020 level in the medium to long term. As shown in our Electricity Price Forecasts 2024 on behalf of the Bavarian Industry Association (vbw), the reasons for this are higher gas prices and increased costs for emissions trading certificates.

Increased volatility on the electricity market

Momentum in global energy markets is currently high. However, little has changed in comparison with the Electricity Price Forecasts 2023:

  • Electricity prices are closely linked to developments in gas prices.
  • The large range of possible gas price developments complicates the forecast of how electricity prices will develop.
  • Fluctuations in electricity prices are, however, more frequent, irrespective of changing gas prices. This is partially due to the extension of the photovoltaic system and the fact that solar energy prices vary according to season (lower prices in summer).
  • Despite the subsequent decline in wholesale electricity prices from 2024, prices are still higher than in 2019/2020 in the medium to long term.
  • Renewable energies are the dominant energy generation technology and will reach 81 percent by 2030 (forecast 2023: 83 percent) of nett electricity generation.
  • Prices are at a similar level as in the 2023 forecasts. Slight changes result from a somewhat lower electricity demand and a small increase in wind power plants.

Our approach

The Prognos electricity market model was used to model future electricity market prices. The model maps all power plants in Europe and models the dispatch of the wholesale market on an hourly level. It assumes both exchange with countries abroad as well as covering the respective domestic burden.

For wholesale electricity prices an upper, middle and lower price development course was respectively generated. These are based on the relative price developments for natural gas and coal as well as EU emissions trading certificates. The scenarios are based on assumptions about future electricity use and the future installed capacity for electricity generation.

With regard to other parameters such as the expansion of renewable energies and the development of electricity demand, we have aligned ourselves with the current energy and climate policy goals of the Federal Government and the EU.

Links and downloads

The study (vbw website in German)

Project team: Sven Kreidelmeyer, Aurel Wünsch

Latest update: 21.10.2024

Do you have questions?

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Sven Kreidelmeyer

Project Manager

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