Germany's natural gas demand rises to a nine-month high, as low temperatures and reduced wind power increase gas-fired electricity generation

(1) Low temperatures and reduced wind power output have boosted gas-fired power generation in Germany, driving up natural gas demand. (2) According to data from the European Network of Transmission System Operators, on Wednesday the average gas-fired power output in Germany exceeded 10 GW, reaching 14 GW during the evening peak—the highest level since February. (3) During the same period, electricity demand approached 60 GW, the highest since March. Wind power output is expected to continue declining until Thursday evening, which may further drive up gas-fired power generation. (4) In the intraday electricity market, electricity prices traded on Epex Spot were around 246 euros/MWh between 7 and 8 p.m. (5) Overall, weather conditions and wind power fluctuations are the main drivers of the recent short-term increase in gas-fired power generation. Going forward, the marginal impact of temperature changes and the pace of wind power recovery on natural gas demand and electricity prices will be monitored.