Worry over no wind, sun in October sends German power prices soaring

Bloomberg reports:

German power for delivery next month jumped to the highest since January as rising fuel prices boosted costs for generators.

The contract yesterday gained 14 per cent since Aug. 26 as the equivalent coal contract rose 6.7 per cent in the period and European emissions permits climbed 25 per cent, according to broker and exchange data compiled by Bloomberg.

Germany boosted its share of power supply from renewable energy sources such as wind and solar to 23 per cent last year from 17 per cent in 2010, increasing its reliance on less predictable forms of generation. Renewable energy gets priority access to Germany’s grid and solar output is highest in summer months, when sunshine hours are greater and electricity demand for heating is lower.

“If there is a lack of wind in October then prices could really rise, especially if it is cold,” Daniel Juul Jensen, a senior trader at Danske Commodities A/S, said yesterday by phone from Aarhus, Denmark. “People are a bit afraid of no wind and no solar next month.”

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5 thoughts on “Worry over no wind, sun in October sends German power prices soaring”

  1. Maybe they will wake up to the fact the solar and wind are “fairweather friends.” Supplementary energy at best. Economy destroying if not stopped.

  2. I bet the Germans are quickly going back to the oil boilers they used to use for heat some 20 years ago. I certainly wouldn’t want to rely on a now flakey power system when my family could freeze to death.

  3. That depends a lot on whether Germans can get oil at a price they can pay. Previously affluent European countries — UK and Germany are getting the most attention on this — have “greened” their economies into doldrums and their middle class into energy poverty. What kind of stewardship is that?

  4. Hate to say it but a few months of over cast days and no wind would be great to expose the idiocy of dependecy on such energy systems without also building running conventional power plants with enough copacity to cover such situations… You Have to have conventional power plants running 24/7 of equal or greater capacity than provided by Wind and Solar even it the conventional plants provide no load.. It can take a coal, oil, gas power plant up to a week to start up from a cold start and a cold start on a nuke can take a month…

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