Gas-fired generation has moved back into the spotlight as soaring temperatures increase electricity demand across Europe. As nuclear and renewable output face weather-related constraints, gas-fired power plants are providing essential flexibility and helping maintain power system reliability during periods of peak demand.
Germany’s intraday prices are surging to above €600/MWh as the historic heatwave is driving up cooling needs, while both nuclear and wind power output is down.
The heatwave is having a double effect on the European power system: electricity demand is up as people are desperately trying to cool down with AC, fans and some with their heads in the freezer…
At the same time high river temperatures are weighing on French nuclear output. The Golfech-2 reactor is set to be offline for one week, while Civaux-2 suffered an unplanned outage and Penly-2 together with Gravelines-5 is undergoing maintenance. This altogether adds to almost 5 GW of capacity, or around 8% of France’s total nuclear capacity.
In addition, wind power is heavily down, further increasing the strains on the German power sector. In this context, gas-fired power plants are playing a key role in backing up the northwest European power system and helping to keep it cool…
What is your view? How will summer heatwaves impact European gas demand? Could we see more extreme power prices?
