Why does heatwave bring more aggressive energy price hikes?

Extreme temperatures are limiting the power plants’ ability to operate efficiently, according to a report

Why is the UK heatwave bad for energy prices?

With the UK being melted by record-breaking temperatures, analysts have raised concerns over the impact these extreme weather patterns have on the way the country’s grid operates and manages its resources.

On Monday, consultancy LCP said pricing in Britain peaked at £553/MWh, an estimated 58% increase compared to the same period last week when prices stood at £350/MWh.

Rajiv Gogna, Partner at LCP Energy Analytics, said: “In these extreme heatwaves, grid systems see huge spikes in demand as a result of increased energy usage for cooling systems across the country.”

In his analysis, Mr Gogna suggests that power plants are forced to run less efficiently because of these temperatures, with French nuclear power stations being a typical example of this.

The consultant added that renewables can also suffer in this heat.

“In the UK we are seeing solar peaking around 7.5GW, which is actually down on what was being generated two days ago in cooler temperatures.

Solar panels are simply less efficient when operating at extreme temperatures. In these high pressure weather systems which are driving the heat up we also see less wind and therefore wind generation is down too.”

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