Germany Electricity Market Outlook 2022: Tailwind for Renewables

Bloomberg New Energy Finance's outlook for the German electricity market suggests electricity prices will peak in 2023, driven by high natural gas prices and expectations of supply shortages. Electricity prices will then fall until 2030 as gas markets rebalance and renewable deployment accelerates. After 2030, along with the phasing out of nuclear and coal power, rising carbon prices will support electricity prices. Renewables benefit in the short term from high electricity prices, as profit margins will continue to be higher than needed to drive new investment until 2030.