Energy prices rise in Europe / German wholesale electricity more than 60% more expensive than last year

Europe is entering the cold season with renewed pressure on energy prices. In Germany, wholesale electricity for delivery in January 2027 exceeded 180 euros per MWh, more than 60% higher than a year ago. The increase is mainly driven by rising natural gas prices and growing competition for liquefied natural gas.

European countries are trying to replenish their stocks ahead of winter, but deliveries are being affected by tensions in the Middle East. The closure of the Strait of Hormuz disrupted LNG shipments from Qatar, increasing pressure on the global market.

Weather will be decisive in the coming months. A cold winter, combined with reduced wind and solar power generation, could force Europe to use more gas and coal. In this scenario, wholesale electricity prices could rise by up to 50%, according to estimates cited by Bloomberg.