Europe relies on fossil fuel power generation, electricity prices rise to high levels

(1) Europe will rely heavily on fossil fuel power generation this week, pushing electricity prices to levels not seen since the 2022 energy crisis. (2) Cold and windless weather has suppressed wind and photovoltaic output, intensifying the strain on electricity supply. (3) Natural gas prices have already increased significantly, and recurring cold, windless weather may keep wholesale electricity prices high during the colder months. (4) This situation serves as an early warning that costs may remain high this winter, and the pressure from electricity prices could ultimately be passed on to consumers and businesses.