European electricity prices take downward turn

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The fourth week of August saw average electricity prices fall across most major European electricity markets, according to analysis from AleaSoft Energy Forecasting.

Weekly average prices fell from the week prior in Belgium, Britain, the Netherlands, France, Germany, Italy, and the Nordic markets, but increased in Spain and Portugal.

AleaSoft said price decreases were driven by a fall in weekly average gas prices, an increase in wind production in most markets, and a drop in electricity demand in some markets. Portugal and Spain’s price increases were driven by a decline in wind and solar production.

The Italian market continued to record the highest weekly average price at €123.31 ($136.99)/MWh, followed by the Spanish and Portuguese markets at €82.34/MWh and €82.60/MWh. 

The rest of the analyzed markets had weekly averages below €65/MWh, with the Nordic market recording the lowest average, at €7.42/MWh.

All analyzed markets, bar the Italian market, registered negative electricity prices on Aug. 25. The UK market reached negative prices four days last week, while the Belgian, Dutch, French, German and Nordic markets posted negative prices on five days. The Dutch market registered the lowest hourly price of all at -€44.92/MWh on Aug. 24.

AleaSoft said it expects prices to increase in most analyzed markets this week, driven by a fall in wind energy production and increase in electricity demand.

Last week, solar energy production decreased in Germany, Portugal, and Spain, but increased in France and Italy. AleaSoft forecasts higher solar production in Germany this week, with declines in Italy and Spain.

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