Oct 7, 2025
Prediction of a Cold Snap Causes Surge in Europe's Electricity Prices
Power prices in Germany and France, the leading European economies, spiked on Monday to their highest levels since February due to predictions of a cold snap in early autumn and decreased renewable energy production.
France’s month-ahead electricity price climbed by 4.1% to $89.13 (76.23 euros) per megawatt-hour (MWh), while Germany's price increased by 3.6% to $116.69 (99.79 euros) per MWh, according to EEX data cited by Bloomberg.
“German power prices have risen primarily due to concerns about colder weather and lower-than-average renewable generation,” stated Yiannis Papamikrouleas, head of futures trading energy markets at DEPA Commercial SA, to Bloomberg.
Weather forecasts predicting below-normal temperatures are also contributing to the rise in France’s power prices this week.
Dutch TTF Natural Gas Futures, the benchmark for gas trading in Europe, rose by up to 4.1% at 1 p.m. in Amsterdam, as traders anticipate that colder weather will increase heating demand across Europe as early as next week.
As of October 4, the EU's gas storage facilities were nearly 83% full, according to Gas Infrastructure Europe, but an early cold snap might compel some countries to tap into their storage sooner than anticipated.
Last autumn and winter, power prices surged as diminishing wind power generation strained European power markets, with electricity prices in Germany reaching their peak since the 2022 energy crisis.
From October 2024 to February 2025, wind speeds in the UK and Germany, where wind energy comprises a significant part of electricity generation, dropped during the 'Dunkelflaute' period, leading to increased power prices in northwestern European countries and a heavier reliance on fossil fuels like natural gas to meet demand.
The decline in wind power output, Germany’s primary electricity source, persisted from late 2024 into early 2025, and coal-fired electricity generation in Germany peaked in early February as renewable energy production lagged.
France’s month-ahead electricity price climbed by 4.1% to $89.13 (76.23 euros) per megawatt-hour (MWh), while Germany's price increased by 3.6% to $116.69 (99.79 euros) per MWh, according to EEX data cited by Bloomberg.
“German power prices have risen primarily due to concerns about colder weather and lower-than-average renewable generation,” stated Yiannis Papamikrouleas, head of futures trading energy markets at DEPA Commercial SA, to Bloomberg.
Weather forecasts predicting below-normal temperatures are also contributing to the rise in France’s power prices this week.
Dutch TTF Natural Gas Futures, the benchmark for gas trading in Europe, rose by up to 4.1% at 1 p.m. in Amsterdam, as traders anticipate that colder weather will increase heating demand across Europe as early as next week.
As of October 4, the EU's gas storage facilities were nearly 83% full, according to Gas Infrastructure Europe, but an early cold snap might compel some countries to tap into their storage sooner than anticipated.
Last autumn and winter, power prices surged as diminishing wind power generation strained European power markets, with electricity prices in Germany reaching their peak since the 2022 energy crisis.
From October 2024 to February 2025, wind speeds in the UK and Germany, where wind energy comprises a significant part of electricity generation, dropped during the 'Dunkelflaute' period, leading to increased power prices in northwestern European countries and a heavier reliance on fossil fuels like natural gas to meet demand.
The decline in wind power output, Germany’s primary electricity source, persisted from late 2024 into early 2025, and coal-fired electricity generation in Germany peaked in early February as renewable energy production lagged.