Wind energy production in Germany is forecast to be low by the weekend, forcing the country to rely on more expensive fossil fuels to maintain power levels that can meet demand. In this situation, electricity production from fossil fuels in Germany, the largest electricity market in Europe, has increased to a two-year high.
On Wednesday, from 2:00 p.m. to 3:00 p.m. on Epex Spot SE, the price of German energy during the day increased to EUR 1,013.12 per megawatt hour. Prices also rose in the UK, where gas-fired electricity production reached its highest level since January 2020.
The “Dunkelflaute” phenomenon is pumping up prices
The current situation on the energy market best illustrates how dangerous it is to rely solely on renewable energy sources. It’s all because of the “Dunkelflaute” phenomenon – known in energy markets as the German term for periods when almost no wind or solar energy is produced. A similar event last month sent energy prices to levels last seen during Europe’s energy crisis.
Large supply gap
Wind power production in Germany is expected to be just 2,362 megawatts at 2 p.m. and rise to 3,635 megawatts at 6 p.m. as evening demand picks up, EEX data shows. Supply gapwhich is to be filled with fossil fuels, increased by 12 gigawatts compared to the previous day.
Gas consumption in Germany rose to 16.8 gigawatts, the highest since December 2022, while lignite and hard coal production also increased.
Nuclear energy rescue
In neighboring France, daytime prices rose to €286.37 per megawatt hour at 5 p.m. However, French nuclear power production is at its highest level in almost a year, providing an ample supply buffer.
