In a crazy week for energy prices in Europe, wholesale electricity prices for 2023 in Germany and France broke new records on Friday at €850 and more than €1,000 per megawatt hour (MWh) respectively. A year ago, the prices for these two countries were around 85 euros/MWh.
French electricity production at historic lows
There are several reasons behind the price explosion, starting with the depletion of Russian gas flows to Europe since the start of the war in Ukraine: many thermal power plants use gas to generate electricity. As gas becomes more scarce, its price is also at record levels.
In France, only 24 of EDF’s 56 nuclear reactors are currently operational, in particular due to a corrosion problem, which is reducing French electricity production to a historically low level and mechanically raising prices.
Energy saving plans for the winter
For the month of December specifically, the megawatt hour of electricity is already trading above 1,600 euros, an extraordinary level. The European Union and the Member States are in the process of implementing energy saving and sobriety plans, knowing that with the arrival of winter the risk of shortages and energy cuts increases.
Source: BFM TV
