High demand, lower solar output drive up European electricity prices

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Electricity prices rose across most major European markets last week, according to AleaSoft Energy Forecasting.

Weekly average prices increased in Belgium, Britain, the Netherlands, France, Germany, Italy, and the Nordic markets, but declined in Spain and Portugal. AleaSoft attributed the higher prices to increased demand and reduced solar and wind production in some markets. In contrast, the Iberian market of Portugal and Spain saw prices fall due to higher wind production and lower demand.

The Italian market recorded the highest weekly average price at €130.21 ($144.81)/MWh, followed by Germany and the Netherlands, with prices of €96.41/MWh and €89.88/MWh, respectively. The Nordic market had the lowest price at €21.42/MWh.

Belgium, the Netherlands, and Germany all experienced negative electricity prices, with the Dutch market reaching a low of -€10.06/MWh on Aug. 12.

AleaSoft said it expects prices to rise in Belgium, Britain, the Netherlands, Portugal, and Spain in the week of Aug. 19, driven by increased electricity demand. However, it predicted price declines in France, Germany, and Italy.

Last week, solar energy production declined across all major European markets compared to the previous week, with France experiencing the largest drop at 19%. AleaSoft predicted an increase in solar production in Germany and Spain this week, but a continued decline in Italy.

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