Weather and climate trends can influence electricity prices by affecting demand and supply. Heat waves and cold snaps increase demand for cooling and heating, while storms and extreme weather can damage infrastructure and disrupt supply, leading to higher prices. Mild and stable weather conditions tend to keep prices lower.
Weather & Climate Trends
Heat waves & cold snaps
Direction: Up
Extreme weather events (heat waves, cold snaps, and storms) drive demand spikes; NERC projects winter peak demand to be 20 GW higher than last year, increasing risk of price spikes and volatility.