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

0

Share

Published:

May 13, 2022

Country:

Comments:

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

Slovenia speed up renewables deployment law siting solar wind power

Slovenia to speed up renewables deployment with law on siting solar, wind power plants

30 January 2023 - Slovenia presented a draft bill that is aimed at ramping up the wind and solar power uptake by regulating spatial planning issues

croatia biogas power plants energy crisis

Biogas power plants in Croatia are on verge of collapse

30 January 2023 - For more than a year their owners have been struggling to cope with high prices of raw materials, and now a price cap is introduced

Mediterranean resort city Antalya fifth municipal solar power plant

Mediterranean resort city of Antalya to build its fifth municipal solar power plant

30 January 2023 - The Alanya Municipality decided to build its fifth photovoltaic unit, as the model has enabled substantial savings for its electricity costs

Serbia EPS no longer dependent on imports acting CEO Tomasevic

Serbia’s power utility EPS no longer dependent on imports, acting CEO claims

27 January 2023 - EPS is importing much less electricity this winter than last one and it is not dependent on imports, acting CEO Miroslav Tomašević said