A severe drought spanning Europe and now officially parts of England could spell further anguish for the ongoing energy crisis.
"By far the biggest problem afflicting Europe’s energy markets is Russia’s decision to cut natural gas exports, but extreme weather conditions are making things worse,” said Andrew Kenningham, chief Europe economist at Capital Economics
These extreme conditions could have a knock-on effect for the coal-powered energy sector, with low water levels on the Rhine river prompting some power companies to warn of a possible coal shortage.
Since the Rhine is a key passage for coal-bearing barges, power stations face the prospect of being unable to operate.
"On top of that, Norway has warned that it may restrict electricity exports due to low water levels in its hydro-reservoirs,” Kenningham added, while France’s nuclear stations are running at multi-decade lows due to maintenance works.
Germany is likely to suffer worst from a coal shortage, as the country wrests itself away from its reliance on Russian gas sources.
On a positive note, Kenningham stated: "The one silver lining is that the crisis should ease by the second quarter of next year because demand for gas falls as the summer approaches. By the following winter (2023-2024) Europe should have increased its capacity to process and transport LNG (liquified natural gas).”