FRANKFURT, Nov 5 (Reuters) - German utility Uniper (UN0k.DE) , opens new tab has sold sizeable quantities of its future hydropower output as part of a hedging strategy, the company said on Tuesday.

Uniper has sold 75% of its German hydropower output for 2025 at an average price of 124 euros ($134.86) per megawatt hour (MWh) and 30% of the output in 2026 at an average of 88 euros/MWh, it showed in a presentation for an analyst call on earnings for the first three quarters of 2024.

By comparison, the wholesale benchmark price for round-the-clock German power from all generation sources in 2025 closed at 87.0 euros on Monday, and at 82.2 euros for 2026, LSEG data showed.

The discrepancies come from differently-priced fuel elements in the overall wholesale levels.

Those levels also reflect fossil-generated power and renewable sources that are subject to national support schemes and hard-to-predict weather patterns.

Producers use hedging to reduce the impact of price volatility and to lock in forward production prices considered favourable at a certain point in time.

The wholesale market uses the rates to track price trends and assess a utility's physical asset position.

Uniper has so far sold 95% of its 2024 German output at 51 euros after achieving an average price of 34 euros for sales of its 2023 output, it said.

The company also operates coal, gas-fired and nuclear plants elsewhere in Europe as well as wind and solar power generation units that were not reflected.

Regarding Nordic region prices, Uniper said it sold 65% of nuclear and hydropower for 2025 and 35% of output for 2026 at average prices of 38 euros each, after achieving 45 euros for 85% of 2024 output, and 41 euros in 2023.

Sector peer Vattenfall said last week it has hedged 52% of its 2025 Nordic generation at an average of 48 euros/MWh.

($1 = 0.9195 euros)

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https://www.reuters.com/business/energy/uniper-sells-german-hydropower-2025-2026-part-hedging-strategy-2024-11-05/