Germany's Uniper details 2026, 2027 power hedging for hydro, nuclear
In its presentation to analysts on Thursday, German utility Uniper said that it had sold large quantities of future hydropower and nuclear outputs as part of its hedge strategy.
Uniper said that it had sold 40% of German hydropower for 2026, at an average price per megawatt-hour of 92 euros (107.36 dollars), and 30% in 2027, at a cost of 87 euro/MWh. It was discussing the second quarter 2025 earnings, and its strategy.
LSEG data revealed that the wholesale benchmark price of German power round-the-clock from all sources for 2026 was 83.7 euros, and 80.8 euros in 2027.
Hydropower is affected by volatile weather patterns and support schemes, as well as lower wholesale fuel prices.
Hedging is used by producers to protect themselves against price fluctuations and to lock in 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.
The presentation showed that Uniper had sold 85% (133 euros) of its German production for 2025, after the 2024 sales averaged 58 euros.
Other than the plants shown in these slides, the company operates other coal, gas, nuclear, wind, and solar power units in Europe.
Uniper reported that it had sold 55% nuclear and hydropower in the Nordic region for 2026, and 30% for 2027, at an average price of 38 euros. This was after achieving 38 euros so far for 85% 2025 output, and 43 euros back in 2024. $1 = 0.8569 Euros (Reporting and editing by Mrigank Dahniwala).
(source: Reuters)
