Gas and electricity markets in Europe have been extremely volatile over the past two weeks due to rising prices. Gas prices for the fourth quarter of 2022 touched 350 euros per megawatt-hour. Before the pandemic, the price was about 30 euros.
In France, daytime electricity costs up to 2,500 euros. Because its demand is highest during the day. For comparison, the running cost of a nuclear plant in the country is 30 euros per megawatt-hour. The country has several nuclear plants, most of which are closed for maintenance. Price increases have settled at sporadic, but still-alarming levels. Currently, the price of gas there is 250 per megawatt-hour and the price of electricity during the day is 1,750 euros.
How much will the price of fuel in Europe increase in the future? Germany’s decision to keep the three remaining nuclear plants open after December will be announced soon, and France is working to restart more of its nuclear power plants.
On August 31, Russia completely shut down gas supplies to Europe through Germany’s Nord Stream 1 pipeline, citing maintenance. Due to which the gas and energy crisis in Europe has become extreme. Source: The Economist.