Extreme heat across Europe is driving electricity prices to record highs as a phenomenon known as “Hitzefleute” cripples the continent’s power grid. According to data from the power exchange Nordpool, electricity prices in Belgium surpassed one euro per kilowatt-hour (kWh) on Wednesday, a surge that is also impacting energy markets in Norway and Sweden.
What is Hitzefleute and why are prices rising?
The term “Hitzefleute” is a combination of the German words for heat and calm, describing a meteorological situation where high temperatures coincide with a lack of wind. Tor Reier Lilleholt, chief analyst at Volue, explains that the issue arises when the sun sets and wind speeds drop, yet the demand for air conditioning remains exceptionally high. While solar power and cooling needs typically complement each other during the day, the evening creates a supply gap where neither wind nor solar can contribute, forcing grid operators to rely on backup power solutions.
The “Hitzefleute” phenomenon is closely related to “Dunkelflaute,” a term often used during winter to describe periods of extreme cold combined with darkness and low wind, which similarly strains power capacity.
Impact on Norwegian and European electricity markets
While European prices are climbing, the effects are also being felt in the Nordic region. In Norway, electricity prices are currently elevated due to low water levels in reservoirs, but the continental heatwave has exacerbated the situation. Sørvest-Norge (NO2) is experiencing the most significant impact, with prices peaking at 3.80 kroner per kWh between 19:00 and 20:00. Data shows that in a 15-minute window between 19:45 and 20:00, the exchange price hit 5.16 kroner per kWh.
The current market volatility highlights the vulnerability of regional power grids when extreme weather events disrupt renewable energy production simultaneously. While residential consumers in southern Norway are largely shielded from these hourly spikes due to fixed-price contracts, businesses operating on spot prices face the full force of these high-cost intervals, creating a significant disparity in economic exposure.
What is the outlook for consumers?
Analysts suggest that electricity prices may remain sensitive to weather patterns as long as the heatwave persists. Because the price spikes are driven by the specific timing of the evening consumption peak, grid stability is likely to remain under pressure until the demand for cooling decreases or wind conditions shift. For the average household, the financial impact depends heavily on their specific electricity contract, as those on standard variable rates are more exposed than those with protected pricing plans.
Frequently Asked Questions
What does the term “Hitzefleute” mean?
It is a combination of the words for heat and calm, describing a situation where high temperatures, high air conditioning demand, and low wind speeds occur simultaneously, causing a supply-demand imbalance.
Are Norwegian consumers paying the same prices as those in Belgium?
No. While prices in Norway are influenced by the European situation and low domestic reservoir levels, Norwegian consumers are currently paying less than the one euro per kWh seen in Belgium.
Are all electricity customers in Norway affected by the price peaks?
Most private customers in southern Norway have chosen “Norgespris” contracts, which shield them from these specific hourly price peaks. Businesses, however, must pay the full market price.
How do you adjust your energy consumption during periods of extreme weather to manage costs?
Worth a look