Germany sees record electricity price spike amid heating law clash

Day‑ahead market data show Germany's average electricity price reaching almost 53 cents per kilowatt‑hour at 19:45 on Tuesday, after a sharp rise from about ten cents earlier in the day. Analysts attribute the volatility to weather‑dependent renewable generation, heightened CO₂ costs—estimated to be fifteen times higher than before—and reduced capacity from conventional power plants.

At the same time, the coalition government faces intense criticism over a revised heating law. Green Party representatives called the draft a “conceptless gimmick” and warned it could breach the constitution, citing expert reports that question its legality and compatibility with EU rules. The proposed changes would relax renewable‑energy targets for new heating systems, allowing continued use of oil and gas installations while mandating a gradual shift to biogas or bio‑oil from 2029. Opponents argue the measure will delay the Wärmewende, increase reliance on fossil imports and jeopardise climate objectives.