Energy prices in Germany are on the rise again, with consumers facing higher costs for both gas and electricity. Supply shortages are looming in January, as the energy transition reveals its drawbacks.
In North Rhine-Westphalia, residents can expect an average 16% price increase, while energy giant Eon plans a 24.3% hike, according to the Rheinische Post.
Natural gas prices are set to spike in early 2025, driven by cold temperatures and reduced wind power generation. “Wholesale prices for gas hit their highest point in over 13 months in early December,” explains Lundquist Neubauer from the Verivox comparison portal.
But rising prices aren’t the only concern. A “dark calm” is approaching, with electricity prices reaching a shocking 90 cents per kilowatt-hour on December 12. Wind power is expected to generate only 2,600 megawatts, and solar power will be completely absent. Some electricity providers, like Tibber, are warning that prices could exceed one euro per kilowatt-hour.
Bloomberg paints an even grimmer picture, forecasting that Germany’s power reserve will hit its lowest levels this winter. RWE CEO Markus Krebber has warned that without immediate action, Germany could face significant supply shortages as soon as January. Wind power output is expected to fall to under 3 gigawatts per hour, with electricity demand rising. Normally, Germany generates between 40 and 60 gigawatts each hour, with wind contributing about 16 gigawatts.
As energy needs grow, Germany may once again need to import electricity from neighboring countries like France. At the same time, Europe is tapping its gas storage at record levels, with current storage at only 82% capacity and declining. Germany’s own gas reserves are also dwindling but remain at 88%.
