Europe's benchmark power prices break above 1,000 euros for the first time amid regional energy crisis
- Benchmark European power prices jumped above 1,000 euros for the first time, Bloomberg data showed Monday.
- The jump comes ahead of this week's three-day shutdown of the Nord Stream 1 pipeline.
European power prices climbed to a fresh record Monday, with the region's energy crisis pushing benchmark prices above above 1,000 euros for the first time.
German baseload year-ahead power prices climbed as much as 6.6% to 1,050 euros ($1,053) per megawatt-hour during Monday's trading session in Berlin, according to Bloomberg.
The move followed a 25% jump on Friday in German and French electricity prices, leading French year-ahead electricity prices to break above 1,000 euros for the first time.
The prices swelled before Russian state-run energy giant Gazprom shuts down its Nord Stream 1 natural gas pipeline for maintenance between August 31 and September 2. Natural gas is a key source of electricity generation and Gazprom's recent announcement was unexpected. Gazprom said it will resume gas flows if no problems are detected.
Russia has been cutting gas flows into Europe since its invasion of Ukraine in late February as its war was met with a range of sanctions and a pledge by the European Union to reduce dependence on Russia gas. German utility company Uniper last week said it will restart a coal-fired power plant to generate electricity. It planned to provide electricity until the end of April 2023.
European natural gas futures have also hit all-time highs this year. Front-month Dutch TTF natural gas futures on Monday were pulling back, down 11% at 308 euros per megawatt hour.