UK Pays Sixfold for Power Imports Amid Heatwave
Great Britain paid at least six times the normal price for imported electricity on Tuesday as a heatwave drove up demand and reduced renewable generation. The UK’s energy system operator paid about £470 per megawatt-hour to secure imports from Europe between 5pm and 7pm, compared with an average price of £71/MWh in June last year.
Rising Demand and Falling Generation Across Europe
The heatwave prompted a sharp rise in electricity prices across European markets as millions turned to air conditioners and fans to combat record high temperatures. High pressure slowed wind speeds, hitting windfarm output, and caused outages at multiple gas plants in the UK and lower output at some French nuclear plants due to high riverwater temperatures.
Market Prices Hit Multi-Year Highs
In Germany, power market prices were forecast to exceed €545 per megawatt-hour on Tuesday evening, the highest since June 2024. In France, prices climbed to over €268/MWh, the highest since August 2023. The UK’s market price on Tuesday was more than three times the £123/MWh on Monday.
Gas Plant Outages and Reduced Wind Power
Five UK gas plants reduced output due to ambient conditions, cutting about 2.5 gigawatts—enough to power 2.5 million homes. This loss was 40% higher than before the heatwave, according to Shivam Malhotra, head of power trading at LCP Delta. Wind power made up only 13-15% of UK electricity on Tuesday, compared with an average of 30% in June last year.
Households Help Manage Demand
Households are expected to cut energy use to save about 115 megawatts during peak hours through a demand reduction scheme. The National Energy System Operator has been contacted for comment.
