Price trends in the global electricity market

Abstract

The relevance of the research topic is determined by the need to adapt to rapid global changes in the electric power industry, which is associated with a change in the structure of the energy balance, the strengthening of geopo­litical factors, the impact of climate change, economic globalization, new regulatory require­ments, and the rapid development of energy storage technologies and smart networks. These changes lead, on the one hand, to challenges in ensuring energy security, and on the other hand, contribute to significant price volatility in the electricity market. As a result of the influence of global price trends and world energy develop­ment priorities on the domestic electricity sector, the study of these trends is of great importance for Ukraine. The aim of the research is to establish the price trends of the global electricity market with the determination of the key factors of price growth in the context of challenges for Ukraine regarding the stabilization of electricity prices. The research is based on the hypothesis that the factors that determine the trajectory of price changes on the international electricity market are also characteristic of the Ukrainian electricity market. The research was conducted using the methods of statistical analysis, syn­thesis, grouping, tabular and graphical display of results. A retrospective analysis of price dyna­mics on the global energy market was carried out, which showed a faster pace of price changes for energy products than for other products, with a faster increase in oil prices than for coal. The current trends in the development of changes in electricity prices were analyzed, the reasons for their rapid growth in 2021 were identified, and it was noted that in some countries, such as the USA and China, prices remained stable. Using the example of the EU countries, it has been analytically proven that electricity tariffs depend on the price structure. The factors that affect pricing in the field of electricity in the world are determined: energy prices, global crisis pheno­mena, the amount of available supply, weather conditions, supply chain problems, grid infra­struc­ture and distribution, the structure of the electricity market, the share occupied by taxes and fees in electricity prices and the purchasing power of the population. The current state of the electricity market of Ukraine is analyzed, which is characterized by a price imbalance, especially in the retail sector, a settlement crisis between the main market participants, a lack of real competition, limited transparency of the market and opportunities for manipulation on it, and the imperfection of the legislative framework. These factors are exacerbated by external negative influences in the form of a full-scale Russian invasion due to the destruction of electric power infrastructure and loss of capacity