Europe’s Energy Crisis Worsen As Prices Soar

by | Jan 17, 2023 | Headline News | 0 comments

As the cold weather continues to plague Europe unabated, energy prices are soaring. The cold weather sweeping across western Germany, France, and the United Kingdom has allegedly led to a surge in electricity prices on Tuesday.

French day-ahead power prices jumped to 135 euros a megawatt-hour, a 42% increase versus the rolling two-week average. The cause of the price spike is a surge in heating demand and delays in restarting nuclear plants, according to a report by ZeroHedge.

Day-ahead prices in Germany, Europe’s largest economy, increased as much as 16% Tuesday.

“Cold is expected to grip areas from the mid-continent to west, including in western Germany, France, and the UK where average departures from normal range anywhere between 2-6 degrees Celsius below normal,” Matthew Dross, a meteorologist at Maxar Technologies, told Bloomberg. Dross said the cold spell “will increase heating demand for those regions to above normal levels.”

Mild temperatures are expected to return next week, crushing demand once more. Morgan Stanley recently wrote that Europe’s NatGas consumption in the year to October could be as low as 16% below the five-year average.

“Even if it makes gas-fired power plants increasingly competitive with coal-fired power plants, it does not lead to an increase in gas demand for power generation because” other cheaper power generation sources will be used first, Engie SA’s EnergyScan wrote in a note.

Germany Energy Crisis Worsens: Oil Pipeline Leak Cuts Flow To Germany

Germany’s (and Europe’s) Self-Inflicted Upcoming Energy Crunch

“There currently appears to be no end to the losses on the European gas market,” analysts at trading firm Energi Danmark A/S wrote in a note. They added:

“The panic-like situation from last year has been replaced by confidence that Europe will get through this winter without any supply issues.”

Still, some are warning winter isn’t over:

Europe’s Energy Crisis Was Created by Political Intervention

Energy Crisis Worsens: Europe Braces For A Cold, Dark Winter

Europe’s energy crisis looks to be getting worse, but at the same time, could be getting better. It’s interesting how much of the media makes it look dire, while at the same time claiming it’s not all that bad. Perhaps this is a situation to keep an eye on considering the odd way it’s being reported on.

 

Inflation is Running at 40-Year Highs!

Negative interest rates are taxing savers, creating food shortages, and making life miserable in the United States!

There's little time left before the REAL DISASTER occurs!

Download the Ultimate Reset Guide Now!

    Related Articles

    Comments

    0 Comments

    Submit a Comment

    Commenting Policy:

    Some comments on this web site are automatically moderated through our Spam protection systems. Please be patient if your comment isn’t immediately available. We’re not trying to censor you, the system just wants to make sure you’re not a robot posting random spam.

    This website thrives because of its community. While we support lively debates and understand that people get excited, frustrated or angry at times, we ask that the conversation remain civil. Racism, to include any religious affiliation, will not be tolerated on this site, including the disparagement of people in the comments section.