German spot power prices could rise to levels close to the 2022 gas crisis in the coming months, as record-low gas storage, tight LNG supplies and risks to nuclear and hydropower generation put pressure on Europe’s energy markets. While a record strong El Nino could bring mild, wet and windy weather to Europe, potentially easing demand and supporting renewable generation, market observers are still nervous. All eyes will be on the Middle East where the de-facto closure of the Strait of Hormuz has cut off 20% of global LNG supply for over six months now.

Reporting: Julia Demirdag, Reporter, Montel News. Contributors: Mark Stephens-Row, Client Engagement Manager, AtmosphericG2, Alessandro Armenia, Power Analyst, Kpler.