Energy Crisis

German year-ahead power price holds near record amid disputes with Gazprom

German year ahead power price holds near record Gazprom

Photo: Szombat78 / Creative Commons CC0 1.0 Universal Public Domain Dedication

Published

May 13, 2022

Country

Comments

comments icon

0

Share

Published:

May 13, 2022

Country:

Comments:

comments icon

0

Share

German investors remain anxious about the prospect of energy supply for the winter – the year-ahead electricity price held near yesterday’s all-time high for the country even though Russia’s Gazprom increased gas exports. Earlier it imposed retaliatory sanctions on its European subsidiaries following a pipeline halt in Ukraine.

Gas prices in Europe declined after yesterday’s notable jump, helped by favorable weather conditions. More importantly, gas flows to Germany resumed at an expected pace as Russia’s Gazprom boosted deliveries following a halt at a pipeline in Ukraine. The country’s government has blocked the system and accused troops controlled by Russia of illegally tapping gas.

Gazprom switched to another pipeline in Ukraine. But the markets remained nervous after it imposed retaliatory sanctions on a group of its own subsidiaries in European countries and beyond and said it would stop sending gas to Germany through the Yamal pipeline, which passes through Poland.

German year-ahead baseload price hit a record EUR 233.5 per MWh yesterday

Total levels increased significantly in the meantime, but German year-ahead baseload price traded only slightly lower this morning after hitting a record EUR 233.5 per MWh yesterday. The baseload power price for delivery on May 16 in Germany jumped 22.8% to EUR 207.5 per MWh, Reuters reported. Conversely, the Dutch TTF gas futures contract, a benchmark for Europe, dropped 3.7% to EUR 102.75 per MWh.

Germany’s Vice Chancellor and Minister for Economic Affairs and Climate Action Robert Habeck said the deliveries to Gazprom’s subsidiaries in the country yesterday declined 3%. He accused Russia of weaponizing gas, prompting speculation that the government in Berlin could expropriate Gazprom’s assets.

German Minister Robert Habeck accused Russia of weaponizing gas

Nevertheless, it is in Russia’s interest to keep selling as much gas as it can as its oil output is declining.

In other news, Spain and Portugal today capped wholesale gas prices for power plants to EUR 48.8 per MWh for the next 12 months, with the intention to push spot electricity prices lower.

Comments (0)

Be the first one to comment on this article.

Enter Your Comment
Please wait... Please fill in the required fields. There seems to be an error, please refresh the page and try again. Your comment has been sent.

Related Articles

serbia naled CBAM analysis jobs

NALED urges action to protect jobs at energy-intensive industries threatened by CBAM

13 June 2025 - The National Alliance for Local Economic Development has called on the state to introduce measures to protect energy-intensive industries

serbia suncarlito beta solar token subotica solar power plant

SunCarlito Beta issues tokens to raise funds for 2.2 MW solar power plant in Serbia

13 June 2025 - Investors can buy 3,402 tokens called Solar Token ST_1, priced at EUR 500 each. The deadline to purchase the tokens is July 9

nuclear power plant reactor edf france

French power prices jump as EDF looks into possible nuclear reactor defect

12 June 2025 - France’s state-owned power utility EDF is investigating apparent corrosion cracks found at the Civaux 2 nuclear reactor.

nuclear power plant world bank

World Bank to back nuclear projects again amid rising electricity needs

12 June 2025 - The World Bank would support projects to extend the life of existing nuclear power plants and speed up the rollout of small modular reactors.