[Ed. – Woe. Now “climate change” itself is interfering with the “remedies” for it. The end must be near. Bloomberg reports UK power was at an insane record price of 400 pounds per megawatt-hour on Monday.]
Natural gas and electricity markets were already surging in Europe when a fresh catalyst emerged: The wind in the stormy North Sea stopped blowing.
The sudden slowdown in wind-driven electricity production off the coast of the U.K. in recent weeks whipsawed through regional energy markets. Gas and coal-fired electricity plants were called in to make up the shortfall from wind.
Natural-gas prices, already boosted by the pandemic recovery and a lack of fuel in storage caverns and tanks, hit all-time highs. Thermal coal, long shunned for its carbon emissions, has emerged from a long price slump as utilities are forced to turn on backup power sources.
The episode underscored the precarious state the region’s energy markets face heading into the long European winter.