PRECIOUS METALS | European Heatwave Drives Summer Power Demand Higher, Reversing Post-Energy Crisis Decline

A sustained heatwave across Europe is boosting summer electricity demand, reversing a trend of declining power consumption that began with the 2022 energy crisis. According to Jin10, data from the European Network of Transmission System Operators for Electricity (ENTSO-E) shows that from April to mid-July this year, France's average electricity demand reached its highest level for the same period since 2022. This marks the first year-on-year increase in power demand for this period since the energy crisis, ending three consecutive years of decline. According to data from the European Energy Exchange (EEX), the price of power for delivery in the next month in France has risen approximately fourfold since the end of April, exceeding 80 euros per megawatt-hour by the end of June, and has remained at elevated levels so far this month. In the spring, power futures prices fell sharply due to strong solar generation and weak seasonal demand, but the market trend quickly reversed as expectations of sustained high temperatures grew.