France's Power Prices Jump 22% as Heatwave Trims Nuclear Output

France is experiencing a heatwave that is reducing nuclear power generation and driving up electricity prices. As the country's main supplier of nuclear electricity, the heatwave is curbing output and causing day-ahead power prices to surge. On Tuesday morning, France's day-ahead power prices jumped by up to 21.8% to $164.39 per megawatt hour, according to LSEG data cited by Reuters.

This comes as nuclear power plants operator EDF expects nuclear generation to drop by 7.3 gigawatts, or 12% of total capacity, during Wednesday's mid-day peak. France relies heavily on nuclear energy, which accounts for about 70% of its electricity mix. The reduced nuclear output is being further exacerbated by low river water levels and high temperatures used for cooling reactors.

The heatwave has already prompted France to cut nuclear power generation before, including last month when it dropped by 6.4 gigawatts due to a prolonged heatwave. The heatwaves have also impacted nuclear power production in central and eastern Europe, with Hungary and Romania forced to shut down reactors due to the lowest water levels in recent history. Romania recently diverted the Danube river to secure enough water for its reactors.