German gas generation jumps to two-year high as wind power drops

Gas generation in Germany jumped to the highest since December 2022 as low wind generation increased the need for fossil fuels to meet demand, Report informs via Bloomberg.

German intraday power prices surged as the supply gap for fossil fuels to fill widened by 12 gigawatts compared to yesterday. Oil-fired generation jumped to the highest since Nov. 28, according to EEX data.

Intraday power prices are trading at a high of €814.06 for the hour 2-3 pm on Wednesday on Epex Spot SE. Wind generation is expected to drop as low as 2,109 megawatts at 1 p.m., rising to just 3,635 megawatts at 6pm when evening demand surges, EEX data show.

“German wind generation is even lower than the already low forecast levels,” said Sabrina Kernbichler, lead power analyst at Energy Aspects Ltd. There is also “limited available intraday interconnector capacity left to allocate to Germany in those peak demand hours,” she said.

Wind output in Germany won’t increase until the weekend, according to Bloomberg’s model. Prices are sensitive to renewable energy output, and when wind and solar are both low — a phenomenon known as dunkelflaute — the country relies heavily on more costly fossil fuels.

Intraday prices rose in neighboring France with a peak of €281.41 per megawatt-hour at 5 p.m. However, French nuclear output is at the highest in almost a year, as it compensates for low wind.