A combination of record-breaking natural gas prices, rising coal prices, and droughts across Europe are putting the EU electricity market under massive pressure.
this week that gas prices on the spot European market could top $4,000 per 1,000 cubic meters. Recently, spot prices broke the $2,500 barrier.
No wonder, then, that electricity prices in some parts of Europe have hit records. Even less wonder that industries are beginning to buckle, per a recent Bloomberg. The report noted that Germany's year-ahead electricity contract rose to more than 530 euros per MWh earlier this week, which constituted a 500-percent increase over the past 12 months. No industry can absorb such a price shock unscathed, and German industry didn't.
Relief is not in sight unless one considers the filling up of gas storage caverns in Europe a form of relief. The EC had set a target of 80 percent for storage fill rates by October 1. Member-states are on track to hit this target ahead of schedule, but this has come at a cost: the EU's gas bill this year isWhat's more, storage alone will not be enough to keep European economies going through the winter months. The EU will need more gas as regular supply. Besides the U.S.
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