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Europe's Warmest Year Heralds Free German Power for Christmas

  • Wind output may prompt producers to pay buyers to take power
  • Mild weather to add to reduced holiday season demand
Bloomberg business news

Warm Winter Hits European Heating Oil Refineries

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German power prices are poised to sink or even turn negative this Christmas as increased wind generation combines with low demand from mild weather.

Prices may be below zero for hours or even whole days during the holiday season unless utilities shut coal- and gas-fired stations when wind output rises, according to Markedskraft Deutschland GmbH, an energy consultant. On Christmas day, German wind output is forecast to peak at almost double the average for the past 30 days, while a warmer-than-normal December is set to make 2015 Europe’s hottest year on record.