Hydropower

German utility Uniper has taken proactive steps to manage energy price volatility by selling large portions of its future hydropower output as part of a comprehensive hedging strategy. The company has secured favorable production prices for its German hydropower, including 30% of 2026 output at 86 euros/MWh and 5% of 2027 output at 80 euros/MWh, slightly below current wholesale prices. This approach allows Uniper to lock in stable revenues despite unpredictable market fluctuations driven by fuel prices, renewable energy variability, and broader economic factors. The company has also achieved strong results for its 2025 German output, selling 80% at 121 euros/MWh, a significant increase from previous years.

In the Nordic region, Uniper’s hedging strategy has been more conservative, with 40% of 2026 and 25% of 2027 nuclear and hydropower output sold at 38 euros/MWh. While these prices are lower compared to German sales, they reflect regional market dynamics. Competitor Vattenfall has reported higher hedging prices in the Nordic market, illustrating the competitive nature of Europe's energy sector. These strategies underscore the importance of early market positioning and risk management for utilities seeking to navigate the challenges of energy price volatility and maintain financial resilience.