German power prices for May are now roughly four times higher than in France, marking a record multiple driven by the Iran war's disruption to natural gas supplies. This stark divergence highlights how France's nuclear-dominated grid provides stability, while Germany's post-2023 reactor shutdown forces greater reliance on fossil fuels. €86.80 per MWh in Germany versus €22.06 per MWh in France underscores the severity, as low renewable output on German evenings necessitates expensive coal or gas-fired generation. The structural gap existed pre-war but has been accelerated by the current geopolitical premium, according to Yiannis Papamikrouleas of DEPA Commercial.

Utilities have sought to mitigate costs by shifting generation from gas to coal, but the phase-out policy limits this flexibility. The German government is now considering reactivating coal plants or reserves to ease the crisis. French grid constraints during spring also contribute, as export restrictions push domestic prices higher while raising costs for neighbors. This widening gap forces energy-intensive businesses to confront significantly higher operational costs and pressures policymakers to reconsider energy transition timelines.