Extreme heat is pushing power grids across the globe to their limits, with cooling demand surging and electricity prices spiking in multiple regions.

The World Meteorological Organization forecast in a May report that global near-surface temperatures during 2026-2030 will be 1.3-1.9 degrees Celsius above the 1850-1900 average, with an 86% chance that one of those years will exceed 2024 as the warmest on record. Global cooling electricity demand has risen 50% since 2015 to about 2,900 TWh, more than the entire European Union's electricity consumption.

The strain on national grids has been particularly acute this summer. U.S. PJM grid data showed peak demand reached 163 GW on July 2 amid extreme heat, slightly below the 2006 record. New England spot wholesale power prices rose more than 240%, New York City prices doubled and Midwest prices gained over 50%.

U.S. household electricity bills for June-September are estimated at about $792 on average, up nearly 40% cumulatively from 2020, with roughly one in six households behind on utility payments.

Europe faces a similar situation. Temperatures broke records in France, the UK, Spain and Germany. Some French nuclear units reduced output due to high cooling water temperatures, and the UK's National Energy System Operator issued two power supply warnings within a week.

Germany's daily electricity consumption rose from 1,267 GWh on June 11 to 1,396 GWh on June 25, while France's climbed from 1,048 GWh to 1,255 GWh over the same period.

During late-June evening peak hours, Belgium's real-time power price hit 1,038 euros/MWh and Germany reached 747 euros/MWh, both record highs. Italy's daily power demand rose 28% during the heatwave from the previous week. Solar output reached record highs of 52 TWh in June and 55 TWh in July, but prices still surged after photovoltaic output fell in the evening.

Asia has also been gripped by extreme heat. Parts of Japan saw temperatures above 40 degrees Celsius for five consecutive days, while South Korea's South Gyeongsang province recorded 42.5 degrees Celsius on August 2, the highest in over a century.

Korea Power Exchange data showed peak power demand reached 95.04 GW on August 6. South Korea's Ministry of Trade, Industry and Energy said demand could exceed the 97.1 GW national record set in August 2024 if the heatwave and tropical nights persist.

From June to August 4, South Korea averaged 12.1 tropical nights, the highest since records began in 1973. Seoul's Dongjak district recorded a nighttime low of 30.1 degrees Celsius, reaching "super tropical night" levels.

On August 7, China's power load hit its fourth record high of the summer at 1.557 TW, with six regional grids including North China and East China setting 21 new records.

South Asia faces a more complex predicament. Surging cooling demand has left India short of power supply, with the national peak load exceeding 270 GW. India imports 90% of its crude oil and half its natural gas, and fuel shortages have compounded the power supply crunch.

During an April 2026 heatwave, Bangladesh faced a 16% power generation shortfall, with rural areas experiencing daily outages of up to 10 hours. World Weather Attribution research shows climate change has made such extreme heat events in South Asia at least three times more likely.

In response, governments and companies are ramping up climate adaptation investment. The International Energy Agency expects global cooling demand to grow by 1,600 TWh by 2035 under existing policies, roughly equivalent to the combined annual electricity consumption of Japan and South Korea.

Global grid investment is projected to total $5.8 trillion cumulatively during 2026-2035, with about $700 billion for digital grid technologies including smart meters, cybersecurity and automation.

Battery storage can shift cheap daytime solar power to evening peak hours, reducing reliance on expensive thermal power — particularly critical as heatwaves become more frequent.

The pressure of extreme heat on power systems is no longer an occasional event but a long-term reality requiring systematic adjustments in planning, investment and operations.