Supply has not been able to keep up due to years of lower investments in fossil fuels. Europe’s renewable energy sources have struggled with low wind speeds. German power for next year reached €192 MWh. As utilities burn more fossil fuels, carbon prices surged to a record €90.75/t, with options traders betting prices will hit €100/t by the end of 2021.

Spain has called for a change to the EU’s marginal pricing system and for a common EU approach, including natural gas purchases and strategic reserves. It has pushed back against electricity companies’ challenge to Madrid’s €3bn levy on their “windfall profits”. Some EU leaders are calling for the bloc to reconsider decarbonisation plans.

“The short-term prices are the only price signals for long-term investment and this has to change,” said the CEO of nuclear power giant Electricite de France SA. He also urged EU nations to overcome their divisions concerning nuclear power when setting the financial rules, otherwise, only non-European banks will be able to finance new atomic plants.

Europe’s gas prices have more than tripled this year as top supplier Russia has been curbing the additional deliveries the continent needs to refill its depleted storage. Higher gas prices boosted the cost of producing electricity. Europe is short of gas and coal and if the wind doesn’t blow, the worst-case scenario could play out: widespread blackouts.

Italy’s power prices are set to increase by 40% in the third quarter as a global natural gas supply crunch starts to impact the country ahead of the cold season. The increase is part of a rally across Europe that’s set to boost bills for consumers all over the continent. Coal reserves in European ports are also at the lowest level for this time of year since 2016.

Sustainable investment assets grew to $35.3 trillion globally last year. But the bulk of that money, some $25 trillion, is in a strategy called “ESG integration,” also known as “ESG consideration.” This means that managers are including ESG data in their financial models, but they’re not necessarily compelled to act on that information.

Poland draws 70% cent of its electricity from coal. Rising prices for EU carbon permits are putting pressure on its energy companies. The government plana to build the country’s first nuclear plant by 2033. Five more are due to follow by 2043. Location for the first reactor will be chosen this year and the project’s financing model and technology next year.

April, May and June had been the third-worst quarter for wind in the past 22 years in the North Sea, where Orsted has most of its wind farms. The lower wind speeds cost Orsted DKr1.4bn ($220m) in lost earnings. Low wind speeds have affected several European companies active in renewable energy including SSE in the UK and RWE in Germany.

Despite record additions of renewable generation capacity, fossil fuel-based generation and associated emissions are rising along with electricity demand. Prices were 54% higher in the first half of 2021 compared with the same period in 2020. The hourly changes in demand that have to be matched by flexible generation and consumption are increasing.

European gas rates reached a record this week. The world is expected to depend more on cleaner-burning gas as a replacement to coal. Looking further out, the appetite for liquefied natural gas is expected to grow by 3.4% a year through 2035. But as producers curb investments into new supply, it is becoming apparent that expensive energy is here to stay.

... and it took 150 firefighters 4 days to put out Australian local authorities said on Monday. The Victorian Big Battery project, where the fire started on Friday morning, is made up of 210 Megapacks. It was built by French renewable energy giant Neoen using Tesla's 300 megawatt battery packs and is on track to be operational by the end of next year.

China’s top policy makers urged an easing of the aggressive measures taken to reduce carbon emissions. The Politburo’s recommendation comes as coal, China’s principal energy source, is in short supply. Coal prices in China have climbed toward record levels as the country’s electricity providers struggle to keep the power on during heat waves.