Will the electric car kill the current energy crisis?

€1000 per MWh. This is the unique record reached three days ago in the wholesale electricity market in France. A year ago, this MWh was sold for € 85, which represents an incredible increase of 1000%. After months of dizzying increases in the price of a barrel of oil, Europe and its allies are facing a more serious energy crisis that has caused panic among governments. In the United Kingdom, where the regulated price of electricity has increased by 80% for households in the country, strikes and demonstrations are increasing in the country. In France, Prime Minister Elizabeth Borne is preparing emergency measures to limit the damage as much as possible. A new device that replaces the current tariff shield, financed to the tune of 20 billion euros, should arrive at the end of the year to control gas and electricity prices.

“We owe this unprecedented increase in electricity prices to the particularity of our current system in Europe”explained Nicolas Meilhan, Senior Advisor at EV-Volumes.com and energy expert. “The wholesale price of electricity is defined not by the average cost of our production plants, but by the last plant in the network. However, this last plant in the network is a gas-fired plant. And because the price of gas is new just multiplied by 20 (to € 320 per MWh), things explode ”.

So, what are the immediate consequences for the French? “Fortunately in France, the regulated cost of electricity, the EDF blue tariff which is currently set at less than 15 euro cents per kWh in off-peak hours, protects the consumer even if it will soon be reassessed upwards of proportion. . Those who chose to go through unregulated private suppliers, on the other hand, have already received a bill of 40 cents per kWh. I also advise everyone to quickly return to regulated electricity to avoid this kind of surprise.”Nicolas Meilhan explained.

What is the effect of the electric car?

In recent years, the low cost of using an electric car is naturally one of the biggest advantages of this technology. Although the purchase price is generally higher than the same thermal vehicle, the low price of a fully electric battery allows you to navigate after a few years of use. A few months ago at the height of the Ukrainian crisis, when a barrel of oil flirted with 130 dollars and a liter of gasoline cost more than 2 €, driving an electric car even looks like the ideal solution. And now? “Without protective measures, the electricity bill to recharge the batteries of his car will increase by 4 or 5. So it is impossible to keep this technology attractive in the eyes of the customer. More than thinking that it the increase in the price of electricity will also influence the cost of its construction. In short, everything will depend on the intensity of the protection measures that govern the price of our electricity in France. But sooner or later we will pay the true price of tax”.

The prospect of filling the house, the cost of which will increase by 4, will undoubtedly have something to lose to the average customer. And let’s not talk about the price hikes of fast charging networks like Ionity: “I imagine that these networks will be subsidized to avoid finding prices that are too prohibitive”thought Nicolas Meilhan.

And how long will this unprecedented crisis last? “The current crisis is worse than the oil shocks because they are worried about oil as well as electricity and gas. But we do not have an alternative to this last energy that is currently available in Europe. Gas allows our entire industry to function. Without Russian gas, we have no other solution. So I think we have no other choice but to go back to negotiate with Russia to unblock the situation. It’s about protecting our industries and our entire economy. However, with such energy prices, we will mechanically end up destroying demand. »

So, you thought we couldn’t find anything worse than a full tank of unleaded for €2 a litre?

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