German electricity prices spike on low renewables output

German power prices spiked on Wednesday, driven by persistently low wind generation and increasing electricity demand. Intraday prices soared to €606.92 per megawatt-hour at midday, significantly surpassing Tuesday’s auction rates of €450 per megawatt-hour.

Net power demand, excluding wind and solar, rose by 12 gigawatts compared to Tuesday, according to Bloomberg. “Wind generation is even lower than already low forecast levels,” said Sabrina Kernbichler of Energy Aspects Ltd., adding that limited interconnector capacity further tightened supply during peak demand hours.

Wind output in Germany, currently below 4,000 megawatts, is expected to recover over the weekend. Until then, reliance on fossil fuels continues, exacerbating price volatility during a period of low renewable energy output known asdunkelflaute.

Neighbouring France also saw rising intraday prices, peaking at €277.64 per megawatt-hour, though robust nuclear output helped mitigate the impact of low wind generation. Germany’s day-ahead power prices hit €266.54 per megawatt-hour on Tuesday, the highest since December 2022, excluding a technical glitch in June.

Attribution: Bloomberg

Subediting: Y.Yasser