Canadian wildfires cause $2 billion loss in solar generation in Europe and North America in 2023

Heavy smoke from wildfires across the Northern Hemisphere reduced solar irradiance and curtailed photovoltaic output, costing Europe and North America an estimated $1.9 billion in lost electricity generation in 2023, according to a joint analysis by the International Energy Agency and the Global Solar Council. The study tracked daily solar‑panel performance against satellite‑derived aerosol optical depth measurements, finding that prolonged smoke events in the summer months lowered average solar capacity factors by 3‑5 percent across the two continents.

The financial impact reflects both the diminished energy supply and the higher market price of electricity during the affected periods, as utilities turned to more expensive fossil‑fuel generators to meet demand. Regions most affected included the western United States, where wildfire smoke persisted for weeks, and central and southern Europe, where trans‑Atlantic dust plumes combined with local fires. Analysts note that the losses underscore the growing vulnerability of renewable‑energy systems to atmospheric disturbances and may accelerate investments in grid flexibility and forecasting tools.