Prices for electricity in central Europe have skyrocketed to record highs, as German renewable sources fell short of meeting demand.
On the morning of December 12, average spot market prices in Germany reached €395 per megawatt-hour (MWh), with late afternoon prices climbing to almost €1,000.
These levels marked previously unseen highs. A year before, on December 12, 2023, the electricity spot price in Germany was only €106 per MWh.
Prices have risen similarly in Germany’s neighbours.
In Austria, the price in the morning of December 12 was €360 per MWh, while in Belgium it was €277 and in Denmark €395.
Sweden, divided into four market areas, saw prices reach €310 per MWh in the South, while in Northern Sweden it was only €7 per MWh – a stunning 97 per cent less. Most of Sweden’s electricity production occurs in its north, while most of its demand lies in its south.
German anti-nuclear delusions drive up prices throughout the neighborhood. pic.twitter.com/iz9vAz79QD
— Nicer Günther (@gat_ex_machina) December 12, 2024
The reason for this upheaval in electricity markets was Germany experiencing a period of little sun or wind.
This combination of weather, Dunkelflaute (dark doldrums) in German, meant a huge fleet of renewable power plants – primarily consisting of wind turbines and photovoltaics – generated almost no power.
Germany has an installed wind power capacity exceeding 60 gigawatts (GW). However, due to lack of wind, these wind turbines were currently delivering less than 4 per cent of their theoretical power.
It was a similar case for German solar power, with a theoretical capacity of 96 GW, but currently generating next to nothing.
In an electricity grid, the amount of power generated needs to equal the amount of power consumed at all times to avoid blackouts.
In the past, Germany could count on its fleet of modern nuclear power plants to provide base load power to equalise more fleeting generation from wind and solar power.
However, the country switched off its last three nuclear plants in April 2023, fulfilling a political decision Angela Merkel first made in 2011.
The Green Party, a coalition partner in Chancellor Olaf Scholz’s current government, has since pursued a commitment to “exit nuclear”.
The government has instead aimed to power Germany’s economy almost exclusively using renewable sources.
However, Germany now generated its missing base load electricity in coal-fired and gas-fired power plants, making its power generation the second dirtiest in Europe in pollution and carbon dioxide emissions, next only to Poland.
A large share of Germany’s electricity consumption – currently roughly one-third – needs to be made up with imports, including from France, which continues to operate a fleet of 56 nuclear power plants.
However, extra demand from Germany has driven up electricity prices in the surrounding countries.
High exchange prices also mean higher prices for end consumers.
Clients in Germany with smart meters and variable prices received price warnings from their electricity providers that their prices may reach more than €1 per kWh during peak times.
Hier die Preisprognose pro kWh von meinem Stromanbieter für Dunkelflauten-Donnerstag 12.12.24 pic.twitter.com/0SkhpUos7W
— Roman Lasota 🚜🚛🚂🍴🏭 (@RomanLasota) December 11, 2024
On the weekend of December 14-15, weather conditions were expected to improve. This would ease Europe’s electricity crisis – at least until the next Dunkelflaute.
