Negative electricity prices return to Europe

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Most major European electricity markets experienced negative prices during the third week of April, according to new analysis from AleaSoft Energy Forecasting.

The Spanish consultancy noted negative prices in the Belgian, Dutch, French, German, Portuguese and Spanish markets. Such prices were particularly prevalent over the Easter weekend, but the Iberian market of Portugal and Spain recorded zero or negative results every day last week. 

The finding is a stark contrast to the week prior, when AleaSoft recorded no negative prices across all its analyzed markets. Last week, the British, Italian and Nordic markets continued to avoid the negative figures.

AleaSoft says the average weekly price of electricity fell in the British, French, Italian, Nordic, Portuguese and Spanish markets last week, but increased in the Belgium, Dutch and German markets.

The Portuguese and Spanish markets registered the lowest averages, at €12.90 ($14.67)/MWh and €13.59/MWh. The Italian market continued to have the highest average, reaching €101.87/MWh, despite recording its lowest daily price since July last year when it recorded €82.34 on April 17.

The lowest price of the week was found in the Dutch market, which registered -€57.90/MWh on April 20 at 13:00. The Portuguese market set its all-time record for a minimum price on the same day, at -€4.99/MWh.

AleaSoft says a drop in electricity demand and increased wind energy production last week helped electricity prices to fall in selected markets. It is predicting prices to have increased in most markets during this week, as electricity demand rises and wind energy production falls.

The consultancy also found solar energy production decreased across France, Germany, Italy, Portugal and Spain last week. During the fourth week of April, this trend is expected to reverse in Germany and Spain but continue in Italy.

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