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European power prices jump as record heat wave intensifies

Joe Wertz & Eamon Akil Farhat / Bloomberg
Joe Wertz & Eamon Akil Farhat / Bloomberg • 3 min read
European power prices jump as record heat wave intensifies
The heat wave is putting pressure on Europe’s power grid and energy markets, with record cooling demand
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(June 23): French evening power prices climbed to the highest since the energy crisis of 2022, as a strengthening heat wave threatens to break temperature records from Spain to Germany.

On Monday, a temperature of 43.3°C (110°F) was recorded at Chateaumeillant in France, according to government forecaster Météo-France. Daytime highs are forecast to climb as high as 42°C in western France through Thursday, while parts of Spain will reach 44°C on Tuesday.

The heat wave is spreading north from mainland Europe, where it’s plagued France for nearly a week. Extreme temperatures, fuelled by a high-pressure heat dome directed across the continent by atmospheric changes from a developing El Niño, have already been linked to several deaths.

French authorities have issued red heat warnings for 54 departments, covering Paris and the western half of the country. A number of cities have already set local temperature records.

The heat wave is putting pressure on Europe’s power grid and energy markets, with record cooling demand. Power prices surged for tomorrow’s evening peak, going as high as €933.28 a megawatt hour in Belgium from 9pm to 10pm Wednesday, according to data on EPEX Spot.

Red heat warnings have also been issued for Germany, Luxembourg, Switzerland and the UK, where health authorities have warned of life-threatening temperatures on Wednesday and Thursday.

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Temperatures in southern England will climb to a peak of at least 39°C on those days, which would shatter the existing June record of 35.6°C, according to the Met Office.

Health officials have also warned about the cumulative health effects of “tropical nights", where evening lows don’t drop below 20°C, which can worsen sleep and exhaustion across a population with very little air conditioning in homes and other buildings.

European power supply has been constrained by weak wind generation and restrictions at some French nuclear plants, where high river temperatures are limiting output.

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The curbs started late on Monday at a Golfech reactor on the Garonne river in southwest France before a Nogent unit on the Seine cut output early this afternoon. Further reductions are possible at three other sites on Tuesday and Wednesday, according to Electricite de France.

European power prices are climbing this week as the heat builds. French evening power prices rose to the highest since 2022 while Germany’s price for the evening peak climbed to the highest in two years.

French power grid operator RTE is preparing for possible heat disruptions to the electrical grid, including de-energising power lines that sag from the heat and threaten to touch the ground, said chairwoman Emilie Piette.

In Rome, the cabinet approved economic provisions to protect workers in case of disruptions due to excessive heat. The decree allows certain companies to suspend or reduce work hours during heat waves and gain access to wage-supplement benefits, according to a statement from the government.

In recent years, many Italian regions have adopted measures that require the temporary suspension of outdoor physical work from 12.30pm to 4pm during periods of extreme heat.

Temperatures are expected to exceed 35°C in Rome and Milan over the coming days, with 40°C possible near Bologna, the island of Sardinia and the southern region of Puglia.

Uploaded by Arion Yeow

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