Record variable electricity prices forecast for Wednesday evening in Netherlands

Wholesale electricity prices in the Netherlands are forecast to hit their highest point in years on Wednesday evening, figures from energy exchange Epex Spot show. Similar price spikes are being seen across Europe as soaring temperatures drive unprecedented demand for air conditioning and cooling. Keuze.nl said the surge will push dynamic electricity rates to a record high level.

Wholesale electricity prices are expected to peak at 902.47 euros per megawatt-hour at 8:45 p.m. on Wednesday, marking the highest level in years, according to Epex Spot. The last time prices approached that level was in May 2007, when a megawatt-hour briefly traded at 950 euros.

The ongoing heatwave is driving up electricity prices throughout Europe. Wholesale power costs in France have surged to their highest level in four years, while Germany is experiencing its most expensive electricity market in two years. In Belgium, prices briefly topped 1,000 euros per megawatt-hour, a threshold not seen since 2020.

The surge in electricity prices is not only being driven by increased demand for cooling after sunset. Power supplies across Europe are also being constrained by low wind energy output and reduced capacity at a number of French nuclear reactors.

Consumers on dynamic electricity tariffs are being advised to shift energy-intensive activities outside the evening peak on Wednesday. Keuze.nl forecasts a record price of 1.203 euros per kilowatt-hour at 8:45 p.m., nearly four times higher than a typical summer evening rate.

While prices were already elevated on Tuesday evening, households with dynamic contracts are expected to pay almost 30 euro cents more per kilowatt-hour during Wednesday's peak.