Monthly wholesale electricity prices in Germany 2019-2024

The electricity price in Germany increased in September to 78.06 euros per megawatt-hour. In August 2022, figures reached a record high, at over 469 euros per megawatt-hour. 

Energy crisis in Europe

In 2022, electricity prices in Europe soared. This was the result of a myriad of factors, including increased heating demand due to cold winters, a drop in wind power generation due to low wind speeds, and water scarcity in the summer leading to reduced hydropower production. A rise in natural gas and coal prices ensued from the shortage of these fossil fuels during the economic recovery post-COVID-19 crisis and after Russia invaded Ukraine. Prices have been on the decrease since the beginning of 2023.

Impact on Germany

Germany’s economy was hit by the increase in fossil fuel prices in 2022, as they represent more than 40 percent of the country’s energy mix and are largely imported. As of the beginning of 2024, German electricity prices were still not back at pre-pandemic levels.