Europe's winter power market is flashing its strongest warning since the energy crisis, with German wholesale electricity prices for January soaring over 60% year-on-year.
Bloomberg Markets reports that as Europe enters winter, the electricity market is flashing its strongest warning since the energy crisis. German wholesale electricity prices for January have traded above €180 per megawatt-hour on the European Energy Exchange, up more than 60% from a year ago. The main drivers are the recent surge in natural gas prices and the closure of the Strait of Hormuz due to the Iran war, which has cut off supplies from Qatar, exacerbating pressure on Europe to replenish its natural gas reserves.
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