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2026-05-26 18:42:21
[French Electricity Prices Surge 11.7% as Heatwave Threatens Nuclear and Hydropower Output, Nuclear Power Plant Cooling Issues Resurface] ⑴ French electricity prices have surged due to concerns that a hot summer will lead to reduced nuclear power production and lower hydropower output. Data from the European Energy Exchange shows that one-month electricity futures prices rose 11.7%, reaching their highest level since late March. ⑵ Northwestern Europe is experiencing its first heatwave of the summer, with Paris expected to reach a high of 33 degrees Celsius on Tuesday. Previous hot summers have led to the shutdown of some French nuclear reactors due to rising temperatures in the rivers used to cool them. ⑶ Last year, some coastal nuclear reactors in the country were also affected, with ocean heatwaves causing large numbers of jellyfish to clog filtration systems. French nuclear power plants are a mainstay of the European electricity market, meaning that any changes in power generation will not only affect domestic electricity prices but also have a broader impact. ⑷ The market is pricing in extreme weather events in advance. As a stable baseload power source, nuclear power, if forced to reduce load or shut down due to cooling issues, will simultaneously create power shortages in many European countries, requiring them to compensate through increased natural gas power generation or imports. This further exacerbates upward pressure on energy prices. (5) Currently, with the Iran war pushing up global energy prices, the uncertainty surrounding French nuclear power production adds an extra premium to European electricity prices. In the coming weeks, continued monitoring of river water temperatures, the operational status of nuclear power plants, and whether the heatwave spreads to other European countries is necessary.
