Yesterday, we reported that electricity prices are rising sharply due to the massive demand for power to run air conditioners. The heat of the past few days and the demand for cooling are driving power prices to record highs.
Prices above 1,000 euros per megawatt-hour have not been seen since 2020. However, to obtain electricity on Wednesday around 20:45, one will have to pay 1,038.25 euros per megawatt-hour on the wholesale electricity market. That is the highest price in many years.
During the day, solar panels generate electricity to power air conditioners, but that revenue disappears in the evening. There is also little wind. It is therefore the gas power plants that supply us with electricity, and they are charging extra since they run very little during the day.
Highest prices since 2022
Prices are therefore highest in the evening, roughly between seven o’clock and half past ten. The most expensive time is between a quarter and nine o’clock. Over the past few days, running air conditioners have already driven prices to 658.09 euros per megawatt-hour, the highest electricity price since 2022.
“Temperatures continue to rise, so the demand for cooling continues to increase. Price pressure across Europe is mounting,” explains Matthias Detremmerie, energy trader at Elindus. He attributes the fact that prices are rising even higher on Thursday than in recent days to a lack of wind and higher-than-expected consumption.
The high electricity prices will likely persist in the coming days, Detremmerie expects. The combination of heat, running air conditioners, and a loss of renewable energy is called a ‘kühlkraftkrise’. It is the opposite of a ‘dunkelflaute’, a period in winter without revenue from renewable energy.
High river temperatures
Consumers with a dynamic contract, particularly those with prices that vary by the hour or quarter hour, will see power peaks on their bills. In their case, it is best to schedule switching on high-consumption appliances (washing machine, dishwasher, car charging) for the morning.
In other countries, the same is happening. Electricity is becoming more expensive in the evening, and even though prices in France are significantly lower thanks to the many nuclear power plants, exports from France are getting more expensive because the plants have to limit production due to high river temperatures.
