European Power Surges to Record as France Faces Winter Crunch

(Bloomberg) -- European power prices climbed to record as France is expected to boost imports to face a winter crunch.

Electricity for delivery next year surged as much as 3.2% to an all-time high in Germany, Europe’s biggest power market. France, which usually exports power, will need to suck up supplies from neighboring countries to keep the lights as severe nuclear outages curb generation in the coldest months of the year.

Electricite de France SA said last week it would halt four reactors accounting for 10% of the nation’s nuclear capacity, straining power grids already facing cold weather. At the beginning of January, 30% of France’s nuclear capacity will be offline, increasing the reliance on gas, coal and even oil.

German power for next year jumped to 325 euros a megawatt-hour. Prices gained even as gas futures dropped following a rally of more than 20% on Tuesday.

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