European Short-Term Power Prices Spike as Wind Generation Drops

European short-term power prices spiked, with Germany the tightest market in the region, as a sharp drop in wind generation coincided with a cold snap.

In Germany, day-ahead electricity prices will peak at €371.24 a megawatt-hour just before 5 p.m. as demand spikes into the evening. Prices for delivery on Wednesday settled above 200 for six hours on Epex. Prices at 5 p.m. on Wednesday rose close to €300, slightly lower than prices for today, which were the highest since January.