The Strategist

Electricity price in Europe hits record highs due to calm weather

09/14/2021 - 05:49

Electricity prices in European countries have risen to record levels, according to The Wall Street Journal.

Washington DNR
Washington DNR
According to analytical company ICIS, the price per megawatt-hour in the UK has risen almost threefold since the beginning of August, and almost sevenfold since September 2020, amounting to €331. This is a record since 1999. In Germany, the increase was less significant; nevertheless, the price per megawatt hour rose by 30 percent to nearly €130 over the month.

One of the reasons for this increase is the reduction of electricity production by wind power plants in the North Sea, which, in turn, is due to the absence of strong winds there over the past few weeks. 

To compensate for the losses, electricity generated by gas and coal-fired power plants was used. In turn, gas prices also hit record highs due to the recovery of the global economy and the reduction of its reserves in storage. 

Even coal prices, which had been declining for a long time as this energy carrier is being abandoned in Europe due to its unsustainability, have stopped falling.