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Fading Wind Prompts Germany to Fire Up Dirty Oil and Coal Plants

(Bloomberg)

(Bloomberg) -- Germany is switching on polluting oil and coal-fired plants to plug the looming power gap as wind generation eased.

The use of additional fossil fuels means Germany’s carbon intensity is as high as it was during last week’s cold snap, even though milder weather has curbed heating demand.

Despite building its renewable energy capacity, electricity prices can jump on days when wind and solar power generation are low — the phenomenon known as dunkelflaute. After high generation over the weekend, wind output is forecast to slump on Wednesday, forcing the country to turn to fossil fuels.

Day-ahead power prices in Germany rose 6.4% to €119.99 per megawatt-hour, according to data from Epex. By contrast, French prices settled at €82 per megawatt-hour, with the country’s nuclear fleet operating close to it’s highest level since January. Germany no longer has atomic reactors.

German coal-fired power generation increased on Tuesday, as the profitability of burning the dirtiest fossil fuel compared with gas rose to its highest level since September. 

--With assistance from Eamon Akil Farhat.

©2024 Bloomberg L.P.