(Bloomberg) -- Italian power prices climbed to a nine-month high as demand surges, and the nation falls back on its reliance on gas.
Demand is expected to peak at 49.5 gigawatts at 2 p.m., the highest level since Aug. 2, according to data from Terna SpA. Temperatures are about 3C above normal levels, according to data from Weather Services International.
Power prices for Tuesday settled at their highest level since November 2023. Prices for the hour from 8 p.m. rose close to €250 a megawatt-hour, when traditional peak consumption coincides with cooling demand, according to data from the Italian Power Exchange.
Italy’s reliance on gas exposes the country to price spikes that are tempered elsewhere in Europe by higher solar and wind generation. Average Italian prices in July rose from a year earlier, interrupting the decline witnessed since the region’s energy crisis.
Italy Bucks the Trend of Falling Power Prices in Europe
Day-ahead prices in Italy have averaged €127 a megawatt-hour in August, more than double the equivalent contract in neighboring France. Italy’s day-ahead price for Wednesday settled at €143.15 a megawatt-hour, compared with €89.40 in France.
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