The extreme heatwave across Europe has triggered a sharp rise in electricity prices, with Great Britain paying more than six times the normal price for imported power on Tuesday as millions turned on air conditioning and windfarm output fell.
Record Prices and Power Plant Outages
Great Britain imported electricity from the continent at about £470 per megawatt-hour between 5pm and 7pm on Tuesday, compared to an average market price of £71/MWh in June last year. The price was also more than three times Monday's market price of £123/MWh, according to the National Energy System Operator.
In Germany, Europe's largest electricity market, power prices were forecast to reach over €545/MWh on Tuesday evening — the highest since June 2024, according to the Epex Spot exchange. France, bracing for temperatures up to 43C (109F), saw prices climb to over €268/MWh, the highest since August 2023.
Heatwave Impact on Generation
The heat dome has slowed wind speeds, reducing renewable output. Wind power contributed only 13-15% of UK electricity on Tuesday, compared to an average of about 30% in June last year. Five gas plants reported reduced output due to ambient conditions, cutting about 2.5 gigawatts of capacity — enough to power 2.5 million UK homes. This loss is 40% higher than before the heatwave, according to Shivam Malhotra, head of power trading at consultancy LCP Delta.
“It's not unusual to see a string of unplanned outages at British gas plants, which tend to really struggle in extreme temperatures,” Malhotra said. He added that the energy system operator secured around 1.5 gigawatts of extra electricity from the continent to meet evening peak demand, but noted that Europe faces its own heatwave-related problems.
Household Demand Reduction Scheme
Households are also helping by cutting energy use through a scheme that pays users to reduce demand during peak hours, saving about 115 megawatts of electricity. The National Energy System Operator, owned by the government, has been contacted for comment.
