Negative electricity prices registered in nearly all European energy markets

Almost all of the European electricity markets analyzed by Spanish consultancy AleaSoft Energy Forecasting registered negative electricity prices during the first week of April.

According to data collected by AleaSoft, the Spanish and Portuguese markets registered negative prices for the first time in their history on April 1 and April 5 respectively, and again during hours on April 6, 7 and 8.

On April 7, the Nord Pool market of the Nordic countries registered negative hourly prices for the first time since October 2023. Meanwhile, the Dutch market reached its lowest hourly price on April 6 between 14:00 and 15:00. In France, the market reached a negative price of €0.71 ($0.77)/MWh on April 6, the lowest since early July last year and the only negative price recorded since then.

AleaSoft also analyzes prices from the German, British and Belgian electricity markets. Its report says the only market it analyzes not to record a negative price in the first week of April was Italy, but a price of €0.10/MWh between 13:00 and 14:00 on April 7 was the lowest in this market since April 2020.

During the first week of April, weekly electricity price averages were below €50/MWh in most of AleaSoft’s analyzed markets, only higher in the British (€50.63/MWh) and Italian (€75.78/MWh) markets. The Portuguese and Spanish markets registered their lowest weekly averages for the ninth consecutive week, at €3.87/MWh and €4.41/MWh respectively.

AleaSoft says a decrease in average gas prices and CO2 emission rights, a decrease in electricity demand and an increase in solar energy production in almost all analyzed markets all exerted a downward influence on European electricity market prices last week. The findings also coincide with increased average temperatures in all analyzed markets, with increases ranging from 1.0 C in Italy to 4.4 C in Belgium. 

The consultancy also predicted that electricity prices may increase in its analyzed European electricity markets during the second week of April, influenced by increased demand and decreased wind energy production across most of the countries.

Elsewhere, AleaSoft found the Portuguese market set its all-time record for solar photovoltaic energy production on April 4, with 16 GWh produced. The Italian market reached its second highest ever value on April 6, at 119 GWh, only outdone by 190 MWh on June 17, 2023.

During the first week of April, solar energy production increased by 76% in the Italian market, 60% in the Spanish market, 35% in the Portuguese market and 25% in the French market. The exception was the German market, which was down 1.4% on the week as a whole, reversing an upward trend of the prior two weeks.

In the second week of April, AleaSoft predicts solar energy production will increase in Germany and Spain, but decrease in Italy.