A combination of low wind output and depleted Nordic hydropower reservoirs has pushed European power prices to 2022 highs, with German day-ahead rates settling at 345.64 euros/MWh on Monday.
Day-ahead power prices hit 2022 highs on Monday, with France settling at 334 euros/MWh and Germany at 345.64 euros/MWh, because gas-fired plants using the most expensive gas in Europe in four years are setting the price. Weak wind and solar output is expected to persist until at least the middle of this week, keeping gas demand and prices elevated. Low hydropower reservoirs in the Nordic region add further upward pressure heading into winter.
European electricity markets are facing extreme volatility as wind and solar generation slump across the continent. With gas-fired plants setting prices using the most expensive fuel in four years, day-ahead rates in Germany and France reached their highest levels since December 2022.
A still and cloudy weather front has cut wind and solar output in the UK, Germany and France, so gas-fired plants are setting prices, using gas that is the most expensive in Europe in four years. Day-ahead prices reached 334 euros/MWh in France and 345.64 euros/MWh in Germany on Monday, the highest since December 2022.
The article says wind and solar generation is expected to stay below normal until at least the middle of this week, and low Nordic hydropower reservoirs plus winter approaching could keep upward pressure on prices beyond that.