Uniper details power hedging in Germany, Nordics

Uniper, a German utility firm, announced on Wednesday during an analyst call that it has divested significant portions of its anticipated hydropower yield as part of its risk management strategy, Reuters reported on Wednesday.

In its 2023 financial report, Uniper revealed that it has divested 70 per cent of its 2025 hydroelectric production in Germany at an average rate of €128 ($138.56) per MWh and 5 per cent of its 2026 production at an average price of €113 per MWh.

In contrast, the wholesale benchmark price for continuous power supply in Germany from all sources was €73 in 2025 and €66.3 in 2026, as per LSEG data.

The differences can be attributed to the lower-priced fuel components in the overall wholesale level, which includes gas-generated power.

Additionally, the market conditions for hydropower, which are influenced by national support schemes and unpredictable weather patterns, also contribute to these discrepancies.

Uniper has sold 80 per cent of its 2024 production at €20, after an average sale price of €34 in 2023, using hedging to protect against price fluctuations and lock in future production prices considered favourable at a given time. These rates are used by the wholesale market to track price trends and assess a utility’s physical asset position.

In addition to its operations in coal, gas-fired, and nuclear plants, Uniper also runs wind and solar power generation, which was not mentioned. As for the prices in the Nordic region, Uniper disclosed that it sold 30 per cent of its nuclear and hydropower output for 2025 and 5 per cent for 2026 at average prices of €42 and €47, respectively.

This follows the company achieving an average of €44 for 65 per cent of its 2024 output in the Nordic region and €41 in 2023.

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