German power prices for next year, considered Europe’s benchmark, briefly jumped above €1,000 ($999.80) per megawatt hour on Monday before falling back to €840 ($839.69) per megawatt hour.
“This is not normal at all. It is incredibly volatile,” said Fabian Rønningen, senior analyst at Rystad Energy. “These prices are reaching levels now that we thought we would never see.”
France’s nuclear sector, which supplies around 70% of the country’s electricity, is also struggling with lower output, pushing up the country’s energy prices.
The Czech Republic announced on Monday that it will convene an emergency meeting of Europe’s energy ministers in Brussels next week as the region hunts for solutions.
But great uncertainty remains. High power prices for next year indicate that traders do not think the crisis will last for the next few months, according to Rønningen.