Markets & Policy

Europe’s weekly electricity prices surge on higher gas costs

AleaSoft Energy Forecasting says higher weekly average gas prices and increased electricity demand significantly affected electricity prices last week. In all analyzed markets, bar the Nordic market, the weekly average price exceeded €75 ($82.90)/MWh.
Patrick Jowett
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Patrick Jowett
Image: AleaSoft Energy Forecasting

Electricity prices rose in all major European markets last week, according to analysis by AleaSoft Energy Forecasting.

Electricity prices rose on a weekly basis across the Belgian, British, Dutch, French, German, Italian, Nordic, Portuguese, and Spanish markets. The Italian and Nordic markets had the smallest percentage increases at 9% and 22% week on week, while the Belgian and French markets saw the largest increases at 69% and 82%.

The sharp increases meant weekly price averages were above €75/MWh in all markets, except the Nordic market. Italy continued to have the highest average, reaching €134.35/MWh, while the Nordic market continued to have the lowest, at €9.06/MWh.

The highest hourly prices of the week were recorded in Germany and the Netherlands, at €289.27/MWh and €278.49/MWh on Aug. 29. AleaSoft said this was the highest price in Germany since the end of June and the highest price in the Netherlands since September 2023.

The Dutch and German markets also registered negative electricity prices last week, alongside the Belgian and Nordic markets. The lowest price was recorded in Belgium, at -€53.61/MWh on Sept. 1.

AleaSoft attributed last week’s higher prices to rising weekly average gas prices, increased electricity demand, and lower wind energy production in most markets. It forecasts further price increases in most markets during the first week of September, though a projected demand drop may lower prices in Spain and Portugal.

Solar energy production increased by 11% week on week in Germany last week, reversing a three-week downward trend. However, solar production fell by 13% in Spain and 11% in Portugal.

For the first week of September, AleaSoft predicts that solar energy production will drop in Germany and Italy but increase in Spain, reversing a trend over the last three weeks.

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