Electricity prices in the day-ahead spot markets in the EU increased due to rising energy demand at a time when Russia is exporting less natural gas to Europe and with a halt in coal.
The EU continues the struggle to balance its energy demand since the implementation of sanctions on Russia. The sanctions package, which EU countries accepted in April, includes banning coal imports from Russia effective from Aug. 10.
Russian energy giant, Gazprom, announced on July 27 a restriction in daily natural gas shipments to Europe of a maximum of 33 million cubic meters through the Nord Stream pipeline, reducing the pipeline shipment capacity to 20%.
As a result, electricity prices increased in Europe, and according to European Power Exchange data, France has seen the highest rise.
Electricity prices in the day-ahead spot market in France increased from €611.85 on Tuesday to €645.54 per megawatt-hour on Wednesday.
In Germany, electricity prices in the day-ahead spot market reached €624.34 on Wednesday, up from €605.13 per megawatt-hour in the previous day’s trade.
Price hikes were also evident in the Netherlands, where electricity prices rose from €603.55 to €611.34. Belgium and the UK also experienced price gains from €603.38 to €611.97 and from €520.38 to €539.48, respectively.
In Denmark, spot market electricity prices grew from €605.13 on Tuesday to €624.34 on Wednesday.
Similarly, Switzerland and Austria saw price boosts from €624.52 to €625.09 and from €615.75 to €635.52, respectively.