Electricity prices in Denmark have risen to their highest level in nearly two years, amid indications that September could turn into one of the most expensive electricity months since the country’s energy crisis in 2022, according to DR.
Around 7 kronor per kilowatt-hour in the evening
It may be worthwhile this evening to switch off unnecessary electrical appliances, as the cost of electricity between 19:00 and 20:00 will reach approximately 7 Danish kroner per kilowatt-hour, including VAT.
Prices will also remain at relatively high levels during the hours leading up to and following this period, according to a press release from Danish energy company OK.
Rising gas prices are putting pressure on electricity.
Truls Skipper, commercial director at OK, said that rising gas prices are one of the main factors driving up electricity prices.
Skipper explained that the current situation represents an undesirable development, because rising gas prices are putting pressure on electricity prices and pushing them to higher levels.
He added that electricity production from wind turbines and solar panels is not currently at a sufficient level to put downward pressure on prices, noting that this is leading to higher electricity prices, with exceptionally high price peaks recorded this evening.
A price not seen in Denmark since December 2024
Electricity prices have reached a level close to 7 kroner per kilowatt-hour, a level not seen in Denmark for almost two years.
According to DR, the last time prices reached a similar level was in December 2024.
Price increases have also been evident in recent days.
The price increase this evening was not an isolated incident, as the past few days have also witnessed a clear jump in electricity prices during evening hours.
Current developments suggest that rising electricity prices may become a defining feature of the entire month of September, rather than just a temporary spike on a single day.
The average price is over 2.40 kronor today.
The average price of electricity today is about 2.40 Danish kroner per kilowatt-hour.
Meanwhile, the average price of electricity so far in September has exceeded one kroner per kilowatt-hour, raising concerns that this month could be the most expensive for electricity since the energy crisis that hit Europe and Denmark in 2022.
War and the Strait of Hormuz crisis drive up energy prices
Much of the current rise in electricity prices is related to developments concerning the war in Iran and the Strait of Hormuz, which are currently driving up oil and gas prices.
According to DR, the price of gas, for example, has reached its highest level since the beginning of 2023, and this increase in gas prices is also beginning to be reflected in electricity prices in Denmark.
Recent developments illustrate how closely market electricity prices are linked to the costs of other energy sources, particularly gas, as well as the volume of electricity production from renewable energy sources such as wind and solar power.
