German Merchant Electricity Prices

This page shows how you can get some data on German merchant electricity prices.  You can then compare the German merchant prices to European natural gas prices and gain some understanding of the market.  German merchant prices are collected on a quarterly rather than an hourly basis and European gas prices are extracted from the World Bank Pink data sheet. I went to the German electricity market called eex.com to download german electricity merchant prices and I discovered that I have to pay for the data!!! Of course I could not do this.  I have rambled on about this at the bottom of this page.

Anyway, you can at least download quarterly data on German merchant prices which is ok for the kind of analysis that I often use to discuss merchant prices.  The quarterly merchant electricty price analysis shows some interesting trends in spark spreads and in implied heat rates. So, I put the German price together with natural gas prices from the World Bank and with Exchange Rates from the FRED database. Once you do this you can quickly update all of the data by pressing a couple of buttons.  A summary of the graph that is produced from the file is shown below (This can be updated as explained below).  The graph demonstrates that, like so many other markets, there is a strong correlation between electricity prices and natural gas prices.  Further, the graph shows that there was a long period of low electricity prices relative to natural gas prices starting in 2011.

 

File that Includes Database of Quarterly Merchant Electricity Prices for Germany with Conversion to USD and Natural Gas Prices

 

 

 

Retrieve German Prices.xls

Updating the German Merchant Price Data by Yourself

You can download the file below and it should all work. The link for the free data (that is sometimes updated) and the general link is shown below:

https://www.eex.com/en/market-data/power/spot-market/kwk-index/kwk-index-download/kwk-index—download/59314

http://cdn.eex.com

 

When you open the file, you should see a page like this.  When you press the Read All button, the macro should go to three websites to read data for the electricity prices, gas prices and the exchange rates.

The way the file works to make the graphs is illustrated in the screenshot below.  You should first set up a set of dates that work with the different downloads.  In this case.
The good news about the German merchant electricity prices is that you can press a button in the website page that is titled “Read All”  After pressing this button, the merchant prices, the gas prices and the exchange rates should automatically be read in.  You can then look at the graph of electricity and gas prices as well as the implied heat rate.

Case Study on German Prices

 The German prices demonstrate the effect of renewables on electricity prices.  You can look at the relationship between gas prices and electricity prices.  First note that the strong correlation between gas and electric.  Next look at the heat rate and the change in the relationship.  One of the reasons for the declining heat rates is probably the increased renewables. Maybe also the declining demand.

Lack of Transparency in EEX and German Prices

This  inability to get a database on Germany merchant electricity prices also really stinks because one of the basic objectives of merchant markets is to have transparent prices. Transparent prices can be used by consumers and can be used; transparent prices can be used to prevent bribes for high price contracts; transparent prices can be used by investors to decide what kind of plant to invest in; transparent prices can be used by consumers in deciding whether to lock into long-term contracts; transparent prices can be used by consumers to evaluate the benefits of demand response, and on and on and on.