Economics
German Power-Price Swings Threaten Growth Engine: Energy Markets
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The lack of clarity on Germany’s energy policy is creating the most volatile power prices in seven months, boosting costs for industry in Europe’s largest economy.
The 30-day historical volatility in the price of power for 2014 more than doubled in the past six weeks to the highest since March 4, data compiled by Bloomberg show. Prices are being whipsawed because Chancellor Angela Merkel, re-elected almost a month ago, has yet to give details on her pledge to amend the nation’s $750 billion solar and wind power program, according to CF Partners U.K. LLP, a London-based adviser and trading company focused on renewable energy and commodities.