Uniper outlines power hedging for hydro and nuclear energy for 2026 and 2027.

German utility Uniper announced in an analyst call on Tuesday that it has implemented a hedging strategy by selling a portion of its future hydropower production. The company has sold 35% of its 2026 German hydropower output at an average price of €92 per megawatt hour, along with 5% of its 2027 output at an average of €86 per MWh. This information was shared while discussing first-quarter earnings for 2025.

In comparison, the wholesale benchmark price for continuous German power from all sources closed at €83.46 for 2025 and at €77.39 for 2027, according to LSEG data. The differences in pricing are partly due to lower-priced fuel components reflected in the overall wholesale market, which includes gas-generated power and hydropower influenced by support schemes and unpredictable weather.

Hedging is employed by producers to safeguard against price fluctuations and secure favorable forward production prices. The wholesale market utilizes these rates to monitor price trends and evaluate a utility's physical asset position.

Uniper has sold 85% of its 2025 German output at €126 so far, following 2024 sales that averaged €58, as indicated in the presentation. The company also operates coal, gas-fired, and nuclear plants, in addition to wind and solar generation, which were not mentioned in the slides.

Regarding Nordic prices, Uniper reported that it sold 50% of its nuclear and hydropower for 2026 and 30% for 2027 at average prices of €37 and €38, respectively. For 2025, it achieved €38 for 75% of its output and €43 in 2024.