European electricity grids face strain from heat and low water levels

The European electricity sector is facing significant pressure due to extreme heat and low water levels, affecting both industrial supply and nuclear generation. In Spain, the system operator Red Eléctrica has activated emergency demand response mechanisms four times this summer to prevent widespread blackouts. This has involved cutting power to large industries to prioritize residential service, with costs for system operation services rising 36% compared to last year.

On a broader scale, the European Commission convened an urgent meeting of the Electricity Coordination Group to address supply security in Central and Southeastern Europe. While the group confirmed that the electricity supply remains stable and there is no immediate risk of saturation, the situation is expected to remain tense. The discussion highlighted the impact of high temperatures on nuclear plants and the necessity of preserving Danube river levels to support energy generation and maintain the single electricity market.