Surge in German Power Prices Driven by Increased Fossil Fuel Use

Germany has experienced a significant rise in power generated from fossil fuels, reaching its highest level in nearly nine months. This increase is attributed to cold weather and low wind levels, which have strained the energy supply. On November 20, 2025, power prices surged to €313.27 per megawatt-hour in an auction on Epex Spot SE, marking a 58% increase from the previous day. The situation is expected to worsen as meteorologists warn of a potential Sudden Stratospheric Warming event later this month, which could disrupt the polar vortex and lead to an influx of Arctic air into northern and central Europe.

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The surge in fossil fuel usage underscores the challenges posed by sudden weather changes to renewable power systems. As demand for heating rises, utilities are increasingly turning to conventional energy sources to meet the higher demand. Following Germany's 2023 nuclear phase-out, which removed a significant source of stable, low-carbon power, the country has become more reliant on fossil fuels. Combined thermal generation from coal, gas, oil, and lignite plants reached 35.5 gigawatts, the highest output since February 27, according to data from the European Network of Transmission System Operators for Electricity (ENTSO-E).

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Looking ahead, forecasts indicate that German power prices are likely to spike further next week. Average wind generation is projected to be around 12.2 gigawatts, significantly lower than the 2020–2024 average of 18 gigawatts for this time of year. This decline in wind generation, coupled with the anticipated cold spell in December, is expected to drive up both heating demand and electricity prices.

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Critics of Germany's energy policy have pointed to the increased reliance on fossil fuels as a setback in the country’s transition to renewable energy. The shift back to conventional sources raises concerns about the long-term sustainability of Germany's energy strategy, particularly in light of climate change commitments.

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In response to the rising energy prices and increased fossil fuel use, officials have acknowledged the challenges posed by the current weather conditions. They emphasize the need for a balanced energy mix that can adapt to fluctuations in renewable energy generation while ensuring reliable power supply.

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• “Read: Germany Sees Bigger Role for Gas to Help Keep the Lights On The surge in fossil-fuel usage underscores how sudden weather changes can challenge renewable power systems, prompting utilities to turn to conventional sources of generation to meet higher demand.” — Bloomberg Report

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• “It also highlights Germany’s continued reliance on fossil fuels since the 2023 nuclear phase-out, which removed a major source of stable, low-carbon power from the country’s energy mix.” — Energy Policy Analyst

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While forecasts predict a tightening of power markets in Germany, there is some uncertainty regarding the exact impact of the Sudden Stratospheric Warming event. Different meteorological models may yield varying predictions about the timing and severity of the cold spell, which could affect energy demand and pricing.

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In summary, Germany's energy landscape is currently facing significant challenges due to increased fossil fuel use driven by adverse weather conditions, raising concerns about the sustainability of its energy policy amidst fluctuating renewable energy generation.

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