Global Markets

German power price surge spells good news for CCGT

German power prices have been beating expectations in recent weeks, but this spike is not expected to last German power prices have been beating expectations in recent weeks, but this spike is not expected to last.
By Andreas Walstad 11 September 2017 0 27520
E.On’s Irsching gas-fired power plant. E.On’s Irsching gas-fired power plant. Operators are benefiting from a surge in prices. (E.On)

A sharp rise in German power prices may be good news for operators of the country’s gas-fired power plants, but some expect the bull run to be short-lived.

Higher prices for gas and coal combined with nuclear outages in France have driven German power prices beyond expectations in recent weeks.

The German-Austrian year-ahead power price for 2018 baseload delivery traded above €35/MWh ($12.3/MMBtu) on the European Energy Exchange on Friday, according to data from the exchange, up by around €6/MWh from mid-June and the highest price recorded...