Wedoany.com Report-Nov. 7, German energy company Uniper (UN0k.DE) announced on Thursday that it has sold significant portions of its future hydropower and nuclear electricity output under its hedging strategy. The company disclosed the information in a presentation to analysts while discussing its nine-month 2025 earnings and market outlook.

Uniper logo is seen in this illustration taken, May 1, 2022.

Uniper said it has sold 40% of its projected German hydropower production for 2026 at an average price of 92 euros ($107.29) per megawatt hour, and 60% of its 2027 output at an average price of 86 euros/MWh. These figures were presented in comparison to the wholesale benchmark prices for continuous German power delivery, which stood at 90.4 euros for 2026 and 86.9 euros for 2027, according to LSEG data as of Wednesday.

The company noted that variations between its sale prices and wholesale benchmarks reflect the influence of fuel types, such as gas and coal, as well as the effects of government support mechanisms and fluctuating weather conditions that can affect hydropower production.

Hedging is commonly used by electricity producers to stabilize revenues by securing favorable forward prices and mitigating the risks of market volatility. Wholesale market participants also use these prices to monitor market trends and evaluate a utility’s asset exposure.

Uniper further reported that it has already sold 95% of its 2025 German electricity output at an average price of 133 euros/MWh. In contrast, its 2024 sales achieved an average price of 58 euros/MWh, with the difference largely attributed to unstable weather patterns and resulting power price fluctuations.

The company operates a diverse energy portfolio that includes coal, gas-fired, and nuclear power stations, along with wind and solar generation units across Europe. However, the data presented focused primarily on hydropower and nuclear sales in Germany and the Nordic region.

For its Nordic operations, Uniper said it has sold 60% of its nuclear and hydropower output for 2026 at an average price of 37 euros/MWh and 35% of the 2027 output at an average price of 38 euros/MWh. The company also achieved 38 euros/MWh for 95% of its 2025 production so far, compared with 43 euros/MWh for 2024.

These sales are part of Uniper’s ongoing effort to manage price risk and secure stable returns across its power generation portfolio. The company emphasized that forward sales form a key element of its strategy to maintain predictable cash flows amid uncertain energy market conditions.

Uniper’s approach reflects broader trends among European utilities seeking to balance renewable and conventional generation assets while navigating market volatility, weather-dependent production, and evolving policy frameworks across regional energy markets.