Forest industry electricity consumption in January-June 2013: Forest industry electricity consumption level throughout the first half of the year

Uutiset |

The forest industry’s electricity consumption remained level throughout the early half of 2013. Overall electricity consumption was unchanged from the level recorded in 2012. The market price of electricity has increased from the previous year. Emission allowance prices have been fluctuating because of the European Parliament’s backloading decisions.

The price of electricity was substantially higher in the first half of 2013 than in the corresponding period of the previous year. Factors behind the increased price level include a growing deficit in water reserves, especially around the middle of the period, as well as falling electricity imports from Russia during peak consumption hours. The average price of electricity was about €40/MWh in the first half of 2013, while it was €33/MWh in 2012. The price of electricity did not fall significantly as summer neared like it usually does.

Recession keeps price of emission allowances low

The price of emission allowances has remained low because of the economic downturn. The market price was a little over €6/tonne at the beginning of the year and in the range €3-6/tonne over the full period under review. The largest fluctuations were due to the European Parliament’s decisions to postpone auctions. After the first Parliament decision, in which MEPs voted against so-called backloading, the price fell to a low point of €2.46/tonne. Prices recovered quite rapidly to the level prevailing before the vote, however. The second vote, in which the Parliament decided in favour of backloading, did not lead to a substantial rise in the price of emission allowances.