Post

German ⚡️power price went above €1000/MWh (avg is 75) last week. Weather meant 16GW less renewable generation than usual. Blasted intermittent sources! There was also 11GW of fossil generation unavailable, due to malfunctions. Tech malfunctions. Definitely not Enron-esque trading malfunctions. 🔌💡

“Most customers are shielded from this brief price surge due to long-term contracts, but some energy-intensive companies have reduced production to avoid excessive costs.” ..this doesn’t seem so bad?

Shielded from last week’s price spike. But long term impact is real. Utilities buy power in the forward markets for the amount they expect their customers to consume. If demand is higher, then the utility pays this €1000/MWh for that difference. Increased Utility risk will drive tariffs higher.