Warmer Shift in Europe Brings Mixes for Gas and Power Traders
- This winter won’t be cold enough to absorb all gas in storage
- Climate focus in Germany has translated into higher power cost
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The cold beer will flow as usual, but for the thousands of energy traders, utility executives and analysts descending on Essen and the E-world fair in Germany this week the impact of a relatively mild winter on the power and gas markets will be a main topic of conversation.
The warmer-than-usual temperatures for most of the heating season so far, along with concern about climate change, is scrambling the fortunes of utilities across the region and rippling through natural gas and power markets. While the weather has depressed demand, reducing the price of the fuels used to generate electricity, it’s also sharpened the focus of policy makers on acting against global warming.