- A decline in renewable energy output across the European Union has led to rising power prices, as well as a greater dependence on coal and natural gas. Wind power, which usually reaches a seasonal peak in Europe during the winter, has dropped by over 20% in some countries.
- Reduced wind energy production has driven natural gas prices to a two-year high, while coal prices have risen by about 12% since mid-2024.
- An upcoming Arctic blast is expected to further increase fossil fuel use for heating and potentially exacerbate already rising energy costs.
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A decline in renewable energy output across the European Union has contributed to rising power prices, as well as an increased reliance on coal and natural gas. Last month, wind power generation in the United Kingdom reached decade-low levels. This caused energy costs to spike, a trend that has also been affecting other European nations recently.
Why are renewables in Europe underperforming?
The winter is typically when Europe sees a seasonal peak in wind power generation. This compensates for reduced solar energy output, which hits its seasonal low period during this time. However, persistent low-wind conditions have caused wind energy production to decline over 20% in some countries.
How are European nations responding to this?
This reduced output has led to greater demand for fossil fuels, pushing European natural gas prices to their highest level in two years. Coal prices have also increased by about 12% since mid-2024.
Energy costs could continue to rise as meteorologists forecast an Arctic blast that will bring a sharp temperature drop across northern and western Europe next week. In some regions, average temperatures are expected to fall below freezing.
What happens next?
As a result, additional fossil fuel consumption is anticipated to meet heating demands, which could further drive up energy prices. Some weather experts predict these frigid conditions may persist into March, prolonging the challenges faced by the European energy market.