Balkans Blackout Highlights Climate Threats to Power Grids

The surge in electricity demand during the heat wave and the power deficit in Balkan markets have driven up prices in the Greek wholesale electricity market.

On June 21, a major power outage swept across Albania, Montenegro, Bosnia, and parts of Croatia, triggered by a blackout in the Western Balkans. The interconnected electricity grids of these nations struggled under soaring demand, necessitating intervention from Greece’s Regulatory Authority for Energy (RAE) to restore stability.

The climate crisis is aggravating these vulnerabilities, subjecting power grids to sudden floods that topple transmission towers, droughts that deplete reservoirs, and increased cooling demand during heatwaves.

“The entire power system was built and designed in one climatic era and is now being asked to operate in a different climatic era,” remarks Michael Webber, an energy professor at the University of Texas at Austin, to Bloomberg.

Felicia Aminoff, an analyst at BNEF, notes, “As temperatures and access to air conditioning increase, the grid is expected to be under more strain. We have already seen a rise in peak demand during summer in some European countries, such as Greece, as well as in the Middle East.”

Climate change impacts energy distribution in several ways. Excessive heat boosts cooling demand while diminishing the efficiency of solar panels, thus restricting supply. High temperatures can cause power lines to sag and transformers to overheat, leading to equipment failures and heightened fire risks.

In Greece, both IPTO and HEDNO, responsible for the low and medium voltage distribution network, are fully prepared to tackle any potential issues in the country’s electricity system.

Operators assure the readiness of personnel and mechanisms to respond to potential failures. Greece maintains an adequate electricity supply, with power plants functioning normally to meet the increased demand due to the heat wave.

The islands are also secured, with extra units (generators and gas turbine units) installed where necessary for the summer period.

Amid these prolonged high temperatures in Greece, a high electricity demand is anticipated. On July 15, IPTO data indicates the peak load will exceed 10,000 MW during midday hours. On July 18 and 19, peak loads are projected to reach record levels above 10,600 MW.

The surge in electricity demand during the heat wave and the power deficit in Balkan markets have driven up prices in the Greek wholesale electricity market.

Prices in neighboring markets connected to the Greek system are also elevated, causing a chain reaction of increases.

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