Heatwaves and below-average wind generation have combined with high fuel costs to send the price of electricity across Europe soaring.

Unseasonable weather has compounded already bullish energy prices on the back of tight global gas fundamentals, with markets struggling to meet demand with supply.

Spain has been one of the hardest hit markets, with spot power prices in the country doubling since the start of the year.

The average daily price in July hit €93.50/MWh according to OMIE, three times higher than prices in the same month last year. The trend has continued in August, with seven of 11 sessions settling above €100/MWh and the last three sessions breaking the historical high consecutively.

On Friday, after registering a new historical maximum for the fifth consecutive day, the tariff will reach an average price of 117.29 euros per megawatt hour (MWh) , thus breaking the record reached on Thursday of 115.83 euros per megawatt hour (MWh) and making the price in Spain the second highest across the whole of Europe. Last year at this time, the average price was 40 euros.

One Spanish trader said he expects prices to continue testing new highs as temperatures rise still further.