Cold weather and weakening wind output across Germany boosted gas-fired power generation, lifting demand for the fuel. Gas-fired power generation in Germany averaged more than 10 gigawatts on Wednesday and reached 14 gigawatts during the evening peak, the highest since February, according to ENTSO-E data. The increase came as power demand approached 60 gigawatts, the highest since March. Wind generation is expected to fall through Thursday evening, potentially boosting gas-fired output again.
Intraday power prices for 7 to 8 p.m. traded at €246.29 per megawatt-hour on Epex Spot. Germany's rising gas use coincides with a delicate period for Europe's energy market, just as colder weather forces the region to start drawing down inventories built up over the summer.
German gas storage sites are just 61% full, the lowest level for this time of year since records began in 2009, leaving a smaller buffer against further cold spells. Benchmark gas prices have already climbed to their highest since late 2022 and are now about three times the levels seen last winter.
Europe is bracing for colder weather as winter approaches, with a low-pressure system drawing cold air south from northern Europe. The same system is fueling an Atlantic storm forecast to batter the UK and English Channel coast with hurricane-force winds late Thursday into early Friday.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing