Germany's Power Prices Rise as Market Tightens

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Germany News

Energy Crisis,Wind Power,Natural Gas

Germany is facing a power crunch due to low wind speeds and increased energy demand, leading to higher gas consumption and electricity prices.

Germany’s power margin, the available electricity supply to meet demand, is set to drop this week to the lowest level so far this winter, as low wind speeds and colder weather are straining the power system, according to models compiled by Bloomberg. This week, wind speeds in Germany have dipped again, while colder-than-usual temperatures have settled over much of northwest Europe.

Gas-fired power generation in Germany jumped in November from October by the largest-ever monthly increase, according to data from energy think tank Ember cited by Reuters last week. That was mostly because of the 25% lower wind power generation in October and November compared to the same two months of last year. Germany and the rest of Europe have been drawing from natural gas storage at the highest rates since 2016, amid the cold and windless weather.

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