By Rachel Morrison (Bloomberg) Short-term electricity prices in Germany doubled as quiet weather and an expected shutdown of gas flows along the Nord Stream pipeline reduced supplies.
Power for Monday rose to its highest level since early March, with wind production forecast to remain at very low levels for the next few days. There will also be less gas available for power plants with the shutdown of Nord Stream on Monday.
The rise in prices is another blow to millions of homes and factories in Europe’s biggest economy. Like everywhere else in Europe, they are suffering from rising inflation as the cost of everything from energy and petrol to food soars.
Germany is working to fill its gas storage facilities, even as the main pipeline from Russia shuts down for maintenance. But there are fears the flows may not fully return, prompting the government to pass legislation last week to allow the reactivation of decommissioned coal plants and the reduction of gas production to conserve fuel.
There was some relief on Monday, however, as European gas fell as much as 12% after Canada said it would return a blocked turbine for the Nord Stream pipeline, easing tensions between the West and Moscow.
Wind power production in Europe’s biggest energy market peaked at 8,242 megawatts at midnight and was on track to fall to around 2,000 megawatts on Tuesday, according to a Bloomberg model.
The country’s solar panels will generate a peak of 24,254 megawatts on Monday, far below the record of 36,833 megawatts set on June 15.
Prices are likely to come under more pressure this week as a heat wave has been spreading across Germany since July 16. Temperatures in Frankfurt are expected to reach 37.5 degrees Celsius on July 18, according to Maxar Technologies LLC.
The day-ahead contract rose to 372.60 euros per megawatt hour at the Epex Spot SE auction on Sunday. Electricity for Tuesday traded for €370 through brokers on Monday morning.
By Rachel Morrison © 2022 Bloomberg LP
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