A record heatwave across Europe is pushing power grids to the limit. France has cut nuclear output by roughly 12% as river temperatures rise, forcing EDF to rely on oil-fired backup generation that jumped sevenfold. Germany saw a distribution-level outage, and the UK paid up to GBP 1,379 per MWh to balance its system during low wind and high demand. Italy faces potential blackouts, and EU carbon allowances climbed to EUR 82 per tonne as traders anticipate ETS reforms. In response, governments are accelerating grid investments. The UK awarded subsidies for 7.6 GW of long-duration battery storage. Spain could triple its battery capacity to 700 MW by year end. The Netherlands is targeting 255 MW of flexible residential demand to ease congestion. EU ministers backed faster grid upgrade approvals. These moves signal that extreme weather is forcing real policy shifts, not just emergency fixes.
