Power prices across Europe have surged this week as a dramatic drop in wind generation has forced nations to rely heavily on fossil fuels, leading to a spike in gas demand and a resurgence of energy concerns, Bloomberg reports.
The situation is particularly acute in Poland, where the grid operator PSE triggered a state of emergency on Wednesday due to the power capacity shortage. In the UK, low wind levels have driven the nation to rely heavily on gas-fired power generation, reaching its highest level since November 2023, according to Elexon data.
Germany, a major player in the European energy market, saw power prices for peak hours on Wednesday climb to their highest level since the peak of the energy crisis. The tight supply conditions, driven by the reliance on renewables in a low-wind scenario, are occurring despite temperatures in much of northwest Europe remaining above the 30-year average, according to Weather Services International.
The slump in wind generation has directly fueled demand for gas to produce electricity, supporting fuel prices earlier this week. Some countries have even been forced to tap into their winter gas reserves, with the European Union’s overall inventory witnessing a net withdrawal exceeding 2 terawatt-hours on Monday, according to Gas Infrastructure Europe. This is the biggest withdrawal since the start of the heating season.
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