Heatwave lifts European power prices as French nuclear, German wind fall

European power prices surged as a heatwave hit two of the continent's largest generation sources at once. French nuclear output fell due to high river temperatures, and wind generation in the German zone dropped as the heat pattern suppressed wind speeds across central Europe, per Reuters.

The combination removed a significant volume of low-marginal-cost generation from the merit order at a point when cooling demand was elevated. Both factors are weather-driven and self-resolving once temperatures normalise, but no timeline was given in the Reuters report.

CEZ, the Czech utility with broad central European exposure, raised its financial outlook again. Reuters attributed the revision directly to the higher energy price environment. The back-to-back guidance upgrades signal that the price move is already material enough to shift full-year earnings estimates for generation-heavy portfolios.