Wind Droughts and Regulatory Gaps: Risking Volatility in European Power Markets

, . Higher gas costs, , and reduced wind/hydropower forced greater fossil fuel reliance, driving this surge. .

However, this volatility stems partly from year-to-August 2025, . Sustained low wind forces more fossil fuel burning, straining utility cash flows and raising consumer bills. , potentially easing pressure.

. While recovery is expected, . .

Wind Deficits, , and Price Volatility Risks

Europe's persistent wind droughts have , . , . While September forecasts show wind recovery potential, . Monitoring Needle: Track German/UK wind output forecasts against long-term averages via ENTSO-E data for early reliability signals.

The fragmented rollout of the Clean Industrial Deal State Aid Framework (CISAF) is . Without harmonized capacity rules, , . . .

, . , , . , . . .

, . . Caveat: Policy harmonization progress remains opaque and contingent on political consensus.

Amplifying Weather-Driven Price Swings

. , , as seen in Germany where . , , . , .

. , . , . Meanwhile, . In late 2025, , .

. . . . Without faster regulatory integration, .