Germany intends to subsidize filling of gas storage facilities

Last week began with very limited renewable generation in most European countries. There was almost no wind, requiring significant conventional generation to meet demand. As a result, spot prices surged dramatically. On Monday, the morning peak exceeded 400 €/MWh, and the evening peak surpassed 500 €/MWh. Until Wednesday, low wind generation meant heavy reliance on conventional power plants. However, wind picked up significantly from Thursday, with Storm Éowyn sweeping through the UK and moving toward mainland Europe. The average Dutch spot price for the week was 131.3 €/MWh.
In the last quarter of last year, gas prices for the upcoming summer started trading higher than winter prices—a reversal of the typical pattern, where summer gas is cheaper, allowing for economical storage ahead of winter. This anomaly has caught the attention of the German government, as it was announced that Germany plans to provide financial support through subsidies to ensure gas storage levels remain adequate. This news caused the spread between summer and winter contracts to widen further. Q2 and Q3 gas contracts rose nearly 3 euros, closing at 49.8 €/MWh, while the February contract increased by over 2 euros, closing at 49.7 €/MWh.
CO2 prices also rose, gaining over 2 euros to close at 81.7 €/EUA. Coal prices were relatively stable, with February coal prices dropping 2 euros to 102 €/Ton, while prices for the rest of the year showed slight increases.
Dutch power prices for February climbed by over 10 euros, closing at 115 €/MWh. This increase was partly due to the rise in CO2 and gas prices. Currently, coal-fired power plants are significantly cheaper than gas-fired plants. The clean dark spread for February increased significantly, reaching approximately 5 €/MWh by the end of the week. Meanwhile, the clean spark spread improved slightly but remained negative at -9 €/MWh.

For 2026, gas prices rose by about 0.5 euros, closing at 39.3 €/MWh. The December 2026 CO2 contract increased by over 2 euros, reaching 84.1 €/EUA. Dutch power prices for next year fell by nearly 4 euros, closing at 88.8 €/MWh. The clean spark spread deteriorated by 4 euros, ending the week at -16 €/MWh.

Weekly changes