Energy Crisis Deepens as 'Dunkelflaute' Drives Record-High Electricity Prices

Germany's reliance on renewables faces challenges as low wind and solar output strain supply, raising concerns for industry and international energy markets.

Electricity prices in Germany surged to record highs this week, peaking at over €1,000 per megawatt-hour, due to a 'Dunkelflaute'—a prolonged period of low wind and solar energy production.
The energy shortfall forced increased reliance on gas and oil power plants, with gas prices also climbing due to geopolitical tensions and supply disruptions from Russia.
Despite the price spikes, most private consumers with fixed-rate contracts are shielded from immediate impacts, though industrial users and those with dynamic tariffs face higher costs.
International criticism emerged, particularly from Sweden, over Germany's energy policies, including the phase-out of nuclear power, which some argue contributed to regional price increases.
The German government’s plans to build new gas power plants to ensure grid stability are stalled due to political challenges, raising concerns about the country's ability to manage future energy crises.