Wind production drives European electricity prices down

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Average electricity prices fell across most major European markets last week, according to AleaSoft Energy Forecasting.

When compared to the week prior, price decreases were recorded in the Belgium, Dutch, French, German, Italian, Nordic, Portuguese and Spanish markets. The exception was the UK market, where prices increased week on week by 4.8%.

Weekly averages were below €75 ($81.65)/MWh in all analyzed markets except for the British and Italian markets, which reached €96.94/MWh and €106.96/MWh, respectively. The Nordic market continued to have the lowest average price at €26.68/MWh.

Despite decreases in weekly averages, the Spanish and Portuguese markets registered their highest hourly prices since February, reaching €180.00/MWh on the evening of Oct. 10. And on the evening of Oct. 14, the French and UK markets reached their highest hourly prices since December 2023, at €161.89/MWh and £199.98/MWh, respectively.

The Belgian, British, Dutch, French and German markets all recorded negative hourly prices last week, with the German market reaching the lowest, at -€15.69/MWh on the afternoon of Oct. 13.

AleaSoft Energy Forecasting said an increase in wind production drove electricity prices down last week, alongside a drop in the weekly average price of CO2 emissions. The consultancy said European electricity prices will likely increase again this week due to a drop in wind energy production and an increase in demand.

Solar energy production rose last week in Germany, reversing two weeks of decline, but fell in France, Italy, Portugal and Spain. The record for solar production on a single day in October was broken in Italy, with 89 GWh recorded on Oct. 11.

AleaSoft Energy Forecasting predicted that solar energy production will increase in Germany and Spain during the third week of October, but continue to fall in Italy.

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