Plunge in Wind Power Is Next Big Test for European Power Market
- Short-term electricity prices rise as risks are priced in
- UK and French grids may call for energy saving to ease strain
Wind turbines near Barnstorf, Lower Saxony, Germany.
Photographer: Krisztian Bocsi/BloombergThis article is for subscribers only.
After this week’s cold snap in Europe, electricity traders on the continent and in the UK are bracing for what a slump in wind power over the next few days will do to prices.
Following an autumn that was milder than normal, a December freeze has sent prices soaring. Warnings of power shortages have become more likely and a dearth in supplies from UK, German and Nordic wind parks is set to test grids further.