Hyperdrive

Germans’ Green Energy Resolve Faces Pain in Post-Election Winter

  • Price schock threatens to hit German businesses, consumers
  • Winter squeeze could become new government’s first crisis
The tower for a new wind turbine erected in an existing wind farm near Wismar, Germany on Sept. 20.Photographer: Jens Büttner/picture alliance/Getty Images
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Germany’s clean-energy leanings will be tested as Europe’s largest economy starts facing the bill, and an initial reckoning could come as soon as this winter.

A rebound in demand and tight supplies have driven power, gas and carbon prices in Europe to a string of records.Bloomberg Terminal Wholesale gas doubled in the last three months, power jumped more than 60%, while oil rose about 10%. The combination has helped boost inflation in the euro area and is due to hit consumers in the coming months as prices get passed on.