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Russia-Ukraine War 2026
22OCT

German gas plants back in profit

4 min read
19:10UTC

German gas-fired output ran a 3,039 MW mean on 27 July and a 5,730 MW mean on 31 July as day-ahead power reached €147.05/MWh, flipping the clean spark spread from breakeven into clear profit on a fuel leg that never moved.

ConflictAssessed
Key takeaway

A positive spark spread puts German turbines back in the prompt gas market against storage operators.

German gas-fired generation averaged 3,039 MW on Monday 27 July and 5,730 MW on Friday 31 July, from the energy-charts generation series⁠1. Over the same four sessions German day-ahead daily means ran €116.65/MWh on Tuesday 28 July, €126.29 on Wednesday 29 July, €122.95 on Thursday 30 July and €147.05 on Friday 31 July to mid-morning, with a peak print of €352.36/MWh on 29 July. Wind bottomed out near 2.4 GW in the small hours of Friday. Every price figure here is a daily mean of 15-minute prints from energy-charts, the Fraunhofer ISE service that redistributes Bundesnetzagentur's SMARD market data under a CC BY 4.0 licence.

Neither input cost moved. TTF, the Dutch gas benchmark that prices most European wholesale gas, held between €58 and €60 across the window⁠2 after giving back 8% from its January-2023 high. EUA carbon allowances, the permits a fossil generator must surrender per tonne of CO2, drifted in a €79.4 to €82.0 range⁠3. No clean single-day exchange print for EUA was available this window, so treat that level as unconfirmed rather than settled.

Run both legs through the method this desk published on 20 July, a 55 to 58% efficiency band and 0.2 tonnes of CO2 per MWh, on TTF at €59 and EUA at €81. The German clean spark spread comes out at minus €0.52 to plus €5.03 on 30 July and plus €23.58 to plus €29.13 on the morning of 31 July. These are this desk's calculations, not market quotes. A swing of roughly €65 to €70/MWh, on a flat fuel leg and a flat carbon leg, four sessions after the deepest inversion of the cycle.

The consequence sits underground rather than in the generation stack. Through the inversion, gas the turbines would not burn had no competing German buyer at the prompt, and the caverns took it uncontested. A positive spark puts the combined-cycle fleet that sets Germany's marginal price back in the bidding for those same prompt molecules. That quiet subsidy to refill has been withdrawn in the exact week the refill arithmetic says injection needs to nearly triple. Germany's gas plants came within a euro or two of breakeven on 24 July at the war premium's peak and the spark turned positive once before, on 16 July. Both episodes reversed inside days. This one runs into a calendar with three months of injection season left and a third of German cavern volume still empty.

Deep Analysis

In plain English

Gas-fired power stations only run when it is profitable to burn gas rather than sell it, or store it, instead. That profitability, the "spark spread", swung from roughly breakeven to strongly profitable in about a day, because wind power collapsed and electricity prices jumped while the price of gas itself stayed flat. That means German gas plants started running much harder, generation nearly doubling, at the same time storage operators are trying to buy gas to fill their caverns, so the two are now bidding against each other for the same supply.

Deep Analysis
Root Causes

The structural cause of the flip is mechanical: German gas-fired generation rose from a 3,039 MW mean on 27 July to 5,730 MW by 31 July precisely because the clean spark spread crossed from roughly breakeven into strongly positive territory, and CCGTs are dispatched ahead of storage injection whenever burning gas for power pays better than holding it underground.

That dispatch order is itself the root cause of the competition described in this update's storage arithmetic : during the negative-spread period from 20 to 29 July, caverns had an uncontested bid for prompt gas because CCGTs were off-merit; the moment the spread turned positive, that uncontested run ended, meaning storage refill and gas-fired generation are now drawing on the same pool of prompt supply rather than operating in sequence.

What could happen next?
  • Consequence

    CCGTs and storage operators bidding for the same prompt gas at a positive spark spread could slow the injection pace this update already flags as too slow for the 1 November target (ID:1, this update).

  • Meaning

    Repeated short-duration spark spread inversions this cycle suggest German day-ahead pricing is now more sensitive to wind variability than to the underlying gas price, at least while TTF and EUA hold flat.

First Reported In

Update #31 · Caverns restart, 21 points short of November

Fraunhofer ISE energy-charts (redistributing Bundesnetzagentur SMARD under CC BY 4.0)· 31 Jul 2026
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Causes and effects
This Event
German gas plants back in profit
Turbines that had left the prompt gas market to the caverns are now bidding against them, in the week refill needs to nearly triple.
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Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Editorial standards.