Soaring demand for cooling and reduced nuclear and hydropower output drive electricity costs to record highs in Europe.
European electricity prices jumped to €500 per megawatt-hour as extreme summer heat and drought strain energy supplies. Record-high temperatures boosted air conditioning demand while shrinking river levels forced nuclear and hydropower plants to cut output or shut down entirely.
France reduced nuclear reactor output last month due to insufficient cooling water, and Hungary recently closed its Paks nuclear plant. Hydropower reserves also declined as rivers dried up, compounding supply constraints during peak demand.
The surge in prices highlights vulnerabilities in Europe’s energy infrastructure amid climate-driven disruptions, with no immediate relief expected as heatwaves persist.