Northern Europe faces record electricity prices

Electricity prices in Northern Europe have risen to their highest level since the energy crisis began in late 2022, according to Bloomberg.

The rise was driven, in part, by increased demand due to cold weather and the inability of wind power to offset supply. Prices on the Nord Pool exchange jumped almost 7% to €158 per megawatt-hour. Wind power accounts for approximately 30% of total electricity generation.

Cold weather in the Nordic region is forecast to persist until at least the end of February, and gas reserves in underground storage facilities across Europe were below 40% at the beginning of the month.