Germany power prices to surge during solar eclipse

Germany's wholesale electricity prices are expected to briefly surge during a partial solar eclipse on Wednesday evening, according to European Power Exchange data.

Spot electricity for some 15-minute periods was selling at more than 400 euros per megawatt-hour in day-ahead trading, more than double Tuesday's price at the same time. Prices for the period from 7:45 pm to 8:00 pm, around the expected peak of the eclipse, were as high as 461.17 euros per megawatt-hour.

Wholesale electricity prices are set a day in advance for each 15-minute period through auctions between power producers and large consumers.

The expected rise reflects Germany's increasing reliance on solar power and the weather-driven swings that can affect renewable energy supply. On Tuesday, the wholesale price was close to zero euros per megawatt-hour between noon and 3:00 pm as clear skies supported solar generation.

Most consumers and businesses buy electricity at fixed prices set in advance, although some firms use spot prices.

Spain, where the eclipse will be total, is expected to see the biggest drop in solar generation.

The episode comes during a summer in which heat has constrained parts of Europe's power supply. France has had nuclear output disrupted by heatwaves and droughts, while Romania and Hungary have cut generation at nuclear plants that use Danube water for cooling as water levels fall.