Electricity Prices in Germany Have Skyrocketed. The Reason: A Weather Phenomenon That Challenges Renewable Energy Suppliers

  • The so-called “Dunkelflaute phenomenon” refers to a period with little or no wind and sunlight and can be translated as “dark doldrums.”

  • Grid operators faced difficulties in meeting demand because of low output from wind and solar energy sources.

Germany’s power grid is under strain. On Thursday evening, wind and solar energy generation stagnated across the country, as well as in neighboring Denmark. As a result, the price of electricity skyrocketed to around $984/MWh.

The Dunkelflaute phenomenon. Dunkelflaute is a German word that is often translated as “dark doldrums” or “dark wind lull.” In fact, the term originates from the German words dunkel (“dark”) and flaute (“lull”). It refers to a cold, windless phenomenon that significantly reduces photovoltaic production and halts wind turbine operations. It usually occurs during cold anticyclones and results in an increasing demand for heating.

Until some years ago, Germany’s quiet, dark winters had never had this pronounced impact on electricity bills.

A daily average price of $420/MWh. The daily average electricity price recently approached $420/MWh, which is nine times the price of natural gas. On Thursday evening, the energy mix consisted of 3% hydro, 8% biomass, 10% wind, 25% gas, and 30% coal.

To put this into context, the peak price of $984/MWh was three to five times higher than the maximum electricity prices in France (70% nuclear), the Nordic countries (90% hydro), and Poland (65% coal).

Stress on the German power grid. German grid operators struggled to meet demand due to low wind and solar production during the Dunkelflaute phenomenon. This situation highlights the intermittent nature of renewable energy. It also underscores the need for investment in storage solutions and alternative clean energy sources, as well as a transitional energy strategy.

Since the beginning of 2024, electricity prices in Germany have surged by 585.23% on the spot market index. The closure of nuclear power plants has led to the reopening of some coal plants. However, gas reserves shouldn’t pose a problem for the German population this winter. They’re currently about 87% full, down from 98% earlier in November, which should be enough to get through the season.

Image | Mike Setchell

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