Electricity prices decrease in most European markets

Weekly prices in most of the main European electricity markets fell during the first week of May, according to analysis from AleaSoft Energy Forecasting.

The French and Nordic markets saw the largest percentage price decreases when compared to the week prior, of 44% and 49% respectively. Weekly price decreases were also registered in the Belgian, British, Dutch, German and Italian markets.

An exception was recorded in the Iberian market of Spain and Portugal. The two countries saw weekly price increases of 11% and 13%, but still recorded the lowest weekly averages for the thirteenth consecutive week, at €28.33 ($30.44)/MWh and €28.34/MWh.

The Italian and British markets had the highest weekly price averages last week, standing at €80.48/MWh and €82.83/MWh respectively. The other five analyzed markets had weekly price averages below €65 ($69.83)/MWh.

AleaSoft says a slight decrease in average gas prices and an increase in wind energy production across most markets had a downward influence on electricity prices. Electricity demand also played a part, which decreased in all the major electricity markets. AleaSoft attributes a decrease in demand to the International Workers’ Day holiday on May 1, which is celebrated in most of the countries, as well as an increase in average temperatures in almost all markets.

During the second week of May, AleaSoft predicts electricity prices may increase in most markets, influenced by a drop in wind and solar energy production.

All analyzed European markets registered negative electricity prices on May 1 and May 5, bar the British, Italian and Nordic markets. The German, Belgian and Dutch markets also registered negative prices on May 2. The lowest hourly price recorded last week was in the Dutch market, which registered -€200/MWh on May 1 between 13:00 and 15:00. This represented the lowest price in the Dutch market since the beginning of last July.

The first week of May saw solar energy production increase in the German and Italian markets for the second consecutive week, by 11% and 15% respectively. The Italian market set an all-time record for solar production in the country on May 5, when 134 GWh was recorded.

Portugal broke its daily record for solar production for the second consecutive week. It registered 18 GWh on May 4, but its solar production across the week fell by 8%. The Spanish and French markets also experienced a drop in solar energy production, down 0.5% and 13% from the week prior.

During the second week of May, AleaSoft predicts solar energy production will have decreased in Italy and Spain but will continue to rise in Germany.