Cold Snap Puts Pressure On UK And Nordic Energy Systems

The next two weeks will be bitterly cold in Europe and the energy system will remain under pressure, while wind power will be key in determining changes in energy prices.

The region's energy system will remain under pressure as demand for household electricity surges, and wind power will be key to determining changes in energy prices as severe cold sets in for the next two weeks in northern Europe, with temperatures in London set to fall 7.7 degrees below the seasonal average, WisdomTree App has learned.

Climate forecaster MaxarTech data shows that the Nordic region will bear the brunt of the cold snap, with a low of -9.5 degrees Celsius in Oslo next Tuesday. A cold air mass from the Arctic will also affect the UK and Germany, with temperatures in London next Monday set to be 7.7 degrees below the seasonal average.

Following a mild autumn, the first prolonged cold snap of the coming winter will test Europe's ability to supply electricity, although energy companies have increased their gas reserves. And the unseasonably cold weather makes a repeat of the spike in electricity prices seen in Europe early last week likely.

We could be in for a similar crisis, and wind power will play a key role in influencing energy prices," said Fabian Ronningen, an analyst at Rystad Energy.

According to data from the European Energy Exchange, German wind power generation is expected to peak at around 22,200 megawatts at 9am this Wednesday, but is currently only slightly above 4,100 megawatts.

In contrast, southern Europe remains unaffected by the severe cold at the moment, with unusually mild weather. Temperatures in Madrid are expected to be 5.3 degrees Celsius above normal next Tuesday.