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German Power Prices Post 'Unusually' Sharp Swings on Thursday, Bloomberg Analysis Shows

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Electricity prices in Germany are expected to swing sharply on Thursday, from almost zero at noon to about 400 euros ($465.35) per megawatt-hour at night as solar power drops off, Bloomberg reported, citing data from the Fraunhofer Institute.

This points to an "unusual" gap exposing the country's vulnerability to intermittent renewable output, the analysis said.

Solar generation was estimated to have met over 90% of national electricity demand during noontime, with output in Berlin reaching a new peak of over 55 gigawatts.

However, conditions will change quickly as the sun sets and as wind generation remains weak throughout the day, the news agency said, noting that wind output in Germany may fall to about 2 gigawatts by 8 p.m. local time on Thursday based on Fraunhofer data.

Electricity prices are expected to rise at night, when renewable sources are replaced by expensive gas- and coal-fired power plants and imported power. The US-Iran war has contributed to the increase in natural gas prices.

In May, hourly price swings lifted German power rates to their highest level at this time of year since the 2022 energy crisis, Bloomberg said.

In France, electricity prices are also volatile, although to a lesser extent, with Thursday's gap between the cheapest and most expensive hour at about 160 euros/MWh, according to data from the EPEX Spot SE exchange, as cited by the news agency.

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