Europe’s power system is under strain as an intense heatwave pushes electricity wholesale prices to extreme levels. Soaring temperatures are driving up demand for cooling while simultaneously limiting generation capacity—creating a volatile energy market. Yet Greece stands out for its relative resilience.
Heatwave Drives Demand, Constrains Supply
With households and businesses ramping up air conditioning use amid temperatures exceeding 40°C, concerns are mounting across the continent. In the UK, worries center on insufficient supply margins. In France, nuclear reactors are operating below full capacity due to cooling constraints, while wind generation remains weak across much of Europe.
Record-High Prices in Key Markets
According to EPEX Spot data, average day-ahead electricity prices in Germany and the UK are on track to hit their highest levels since the 2022 energy crisis. In France, prices are approaching the highest monthly average recorded in June 2023.
In Germany’s day-ahead market, prices surged to €207.84 per MWh yesterday—but fell to €133.54/MWh today. A day earlier, during the 15-minute intraday auction on 23 June 2026, prices spiked to a historic €615/MWh—driven by low wind output and soaring cooling demand.
Sharp Declines Across the Continent
Belgium, which posted the highest price yesterday at €257.55/MWh, saw prices drop to €139.46/MWh today. Denmark fell from €208.98 to €130.48/MWh, and France declined from €157.87 to €116.02/MWh.
Greece: Stability Amid Volatility
In contrast, Greece’s average day-ahead price stood at €139.85/MWh yesterday and declined further to €121.33/MWh today—registering only a modest increase compared to other European markets. This stability stems from strong renewable generation: renewables covered over 40% of demand yesterday, rising to 50% when including hydropower—reducing reliance on expensive fossil-fuel plants. Wind power alone contributed up to 70% of demand during evening hours on some days.
For several days running, Greece has ranked among Europe’s cheapest electricity markets—largely insulated from the heatwave affecting the rest of the continent. As a result, expectations are growing for stable retail electricity prices in the coming month.
Building System Resilience
Across Europe, high electricity prices do not signal a supply shortage—but rather highlight the need for a more resilient power system. During this heatwave, costlier fossil-fuel power plants have been increasingly called upon in countries like France and Germany, where nuclear and wind output have faltered. These nations are now facing steeper evening price spikes, as cooling demand rises and solar generation wanes.