The changes in Hungarian energy market prices and return on CCGT investments

The energy industry, in particular the energy markets, has undergone significant changes in recent years as a result of world events. There has been an unprecedented energy price explosion, which has significantly disrupted market conditions. Both electricity and natural gas prices started to rise significantly, and then huge volatility appeared in the market and there was huge uncertainty. This, of course, had a huge impact on the balancing market, and as a result one of the most pressing questions today is the situation of gas-fired power plants. Combined cycle gas-fired power plants (CCGTs) have become increasingly popular in recent times due to their high efficiency, as well as the significant and rapid controllability that is of particular importance due to the steadily increasing weather-dependent renewable penetration in recent years. In my research, I looked at how prices in Hungarian energy markets have changed. I examined how the HUPX Day-Ahead Market, the CEEGEX Day-Ahead Market, balancing energy, up- and downward contracted capacity reserves, as well as EU-ETS allowance prices, have altered. I also examined how the market position of gas-fired power plants has changed due to these effects, which market is worth producing for the expected return on investment in power plants, and the impact of activation on them.