Europe electricity prices surge above €600 as wind power drops
Europe is seeing a huge spike in electricity prices (over €600 per megawatt-hour during peak times) mainly because wind power generation has dropped sharply.
The UK grid operator even flagged a 1.4-gigawatt supply gap for Monday morning.
With both wind and solar expected to stay low until Wednesday across Germany, the UK and Benelux, energy supplies are feeling the squeeze.
High gas prices force fossil plants
Natural gas prices are already high, so when renewables dip (especially during Dunkelflaute, those cold, calm spells), fossil-fuel plants have to pick up the slack.
Futures contracts in Germany and France are now trading at more than double last year's rates, and day-ahead prices for France just broke records: €334.12 in France and settled at €345.64 in Germany, with some short intervals topping €600.
The pressure on Europe's power market isn't letting up anytime soon.