European power prices rose to fresh records on Thursday as a heatwave limits energy supplies and wildfires rage across France.
The gains reflect a tight market for natural gas — used to fuel power plants — as Russia cuts supplies just as Europe works to replenish stockpiles for winter. A drop in nuclear-reactor output, as well as low wind and hydro generation, has exacerbated the squeeze, raising the specter of intervention to reduce demand.
“If Russia cuts off the gas and there might not be enough gas for the whole demand, then there would be rationing,” Annegret Groebel, president of the Council of European Energy Regulators, said in a Bloomberg Television interview. Blackouts “can be avoided, but of course it requires a lot of preparatory work that we are currently doing.”
Benchmark German power for next year rose as much as 6.6% to a record 455 euros a megawatt-hour on the European Energy Exchange AG. The French contract was up as much as 7.8%, rising to 622 euros a megawatt-hour. That’s about $1,100 for the equivalent energy of a barrel of oil. Heat waves this summer have intensified demand while adding to supply disruptions, with key waterways — which are used to generate hydropower, cool nuclear plants and ship energy commodities — drying up.
France is in a particularly dire situation, as more than half of its nuclear fleet is offline for maintenance. Normally the nation would be exporting power, but this year it has become a net importer, leading neighboring countries to
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
EUROPEAN WATERWAY WOES: Rhine River withers to crisis level as Europe craves energyThe Rhine River is set to become virtually impassable at a key waypoint in Germany, as shallow water chokes off shipments of energy products and other industrial commodities along one of Europe’s most important waterways.
Read more »
Wildfire: France battles ‘monster’ wildfire as heatwaves scorch EuropeHOSTENS, France, Aug 11 (Reuters) - Firefighters flew to France from across Europe to battle a 'monster' wildfire raging for a third day near the wine-growing heartland of Bordeaux on Thursday, with no let-up in blistering temperatures likely before the weekend.
Read more »
Thousands evacuated in southern France as wildfires spreadFrance, like the rest of Europe, has been struggling with successive heatwaves and its worst drought on record
Read more »
Business Maverick: Rhine River Withers to Crisis Level as Europe Craves EnergyThe Rhine River is set to become virtually impassable at a key waypoint in Germany, as shallow water chokes off shipments of energy products and other industrial commodities along one of Europe’s most important waterways.
Read more »
Eskom wants to introduce a new ‘time-of-use’ tariff for residential customersPower utility Eskom has submitted its proposed 2023 Tariff Restructuring Plan to energy regulator Nersa, showing how the group wants to make sweeping changes to its price structures.
Read more »
Families throughout the world struggle amid eye-popping food inflationLabour shortages, soaring energy costs and Russia’s war in Ukraine are propelling prices for kitchen staples to new records, dragging family finances along for the ride
Read more »