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Uniper details 2026, 2027 power hedging for hydro, nuclear

In a presentation to analysts on Tuesday, German utility Uniper said that it had sold a portion of its future output of hydropower as part a hedge strategy.

Uniper said that it had sold 35% (of its German hydropower production) for 2026, at an average price per megawatt-hour of 92 euros ($104.12), and 5% (2027), at an average rate of 86 euros/MWh.

LSEG data revealed that the wholesale benchmark price of German power round-the clock from all sources in 2025 was 83.46 euro on Monday and 77.39 euro for 2027.

These discrepancies are partly due to lower fuel prices in the wholesale market, which also reflects conditions on the hydropower and gas-generated electricity markets that are subject to support schemes as well as unpredictable weather patterns.

Hedging is used by producers to protect themselves against price fluctuations and lock-in forward production prices that are deemed favorable at a particular point in time.

Wholesale market rates are used to monitor price trends and evaluate a utility’s physical assets.

Uniper sold 85% its German production for 2025 at 126 Euros so far. In 2024, sales averaged 58 Euros.

Other plants in Europe include coal-fired and gas-fired power stations, as well as solar and wind energy generation units. These were not included in the slide show.

Uniper reported that it sold 50% of its nuclear and hydropower output in 2026, and 30% for 2027, at an average price of 38 euros, after achieving 38 euros on 75% of the 2025 output and 43 euros in 2020. $1 = 0.8836 euros (reporting and editing by Clarence Fernandez; Vera Eckert)

(source: Reuters)