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German Power Rally Could Keep Going Next Year After Record Gain

  • Europe’s Electricity prices mainly driven by gain in carbon
  • Fossil-free utilities are biggest winners on stock market
Germany's Operational Nuclear Power Plants Ahead Of 2022 National Shut Down

Photographer: Krisztian Bocsi/Blomberg

The record jump in prices in Europe’s biggest power market could extend well into 2019.

Booming European carbon futures, Germany’s plan to shut some of its dirtiest plants and low water levels after an extremely dry summer are all factors driving the region’s electricity prices. While this year’s surge probably won’t be repeated, Wood McKenzie Ltd. says average rates for the benchmark contract could rise about 16 percent in 2019.