Europe’s Power Grids Face Heatwave Challenge Amid Rising Prices

A heatwave that began in late June has severely tested European power grids, driving up electricity demand and causing a significant rise in power prices. With temperatures exceeding 40 degrees Celsius, the usage of air conditioners surged, while outages in nuclear and thermal plants worsened the situation. Despite the challenges, European grids managed to maintain stability, primarily due to unprecedented solar energy generation, which reached a record 45 TWh in June. However, the strain on energy storage solutions led to increased prices after sunset, highlighting the need for improved infrastructure to manage future heatwaves.

Since the heatwave began, electricity demand has surged in several countries, with Germany seeing a 6% increase, France 9%, and Spain 14% compared to late June figures. During peak demand, France and Spain experienced increases of 12% and 15%, respectively. The substantial rise in daily electricity prices was noteworthy, as prices surged 15% in Spain, over 100% in Poland and France, and an astonishing 175% in Germany. Ember’s Europe Programme Director highlighted that while solar energy helped mitigate blackouts, energy storage remains inadequate, resulting in soaring post-sunset prices as demand peaks.

June’s solar generation in the EU reached historic levels, with a 22% increase from the previous year, showcasing solar energy’s crucial role in maintaining grid stability during daylight. Ember emphasized that increasing instances of heatwaves necessitate the incorporation of battery storage and demand flexibility in grid planning. Additionally, the study noted that soaring temperatures adversely affected power plants in Italy and France, leading to reductions in output, particularly in the French nuclear sector where nearly all plants faced capacity issues.

On July 4, a blackout across large parts of the Czech Republic was attributed to a transmission failure, with authorities downplaying external weather-related influences. Notably, Germany’s solar output peaked at an impressive 50 GW on the hottest days, contributing significantly to the nation’s power supply. The country’s 14 GW of battery storage and additional pumped storage helped to alleviate the discrepancy between production and consumption peaks.

However, electricity prices have risen sharply, translating into higher consumer costs, especially for air conditioning in the evenings. Storage solutions became economically attractive as they benefited from low daytime prices and sold power during peak demand times. On July 1, price discrepancies in Poland reached nearly EUR 500 per MWh, illustrating the volatility caused by fluctuating supply and demand. Analysts emphasized that efficient storage could minimize reliance on costly fossil fuel imports during peak hours and help maintain grid balance.

Interconnectivity across different countries has played a pivotal role, allowing electricity to flow where it was most needed and diffusing peak pricing impacts. As the heatwave affected various regions at different times, interconnectors effectively managed the distribution of power, showcasing the adaptability of the European energy landscape in responding to immediate challenges. The ongoing situation highlights the urgency for enhanced storage solutions and smart grid technologies to address the increasing frequency and severity of heatwaves.