Lower solar, wind output drive European electricity prices up

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Most major European markets recorded average electricity prices increase last week, according to analysis by AleaSoft Energy Forecasting.

When compared to the week prior, average prices increased in the British, German, Italian, Nordic, Portuguese and Spanish markets, but decreased in the Belgian, Dutch and French markets.

Weekly averages were below €81 ($90.63)/MWh last week in all markets except the British and Italian, which recorded averages of €95.81/MWh and €111.60/MWh. Despite a 91% increase in its weekly average price, the Nordic market continued to have the lowest average of all analyzed markets at €25.84/MWh.

The lowest hourly price of the week, of -€3.95/MWh, was registered on September 12 between 14:00 and 15:00 in the Belgian, Dutch, French and German markets. The Italian market recorded the highest hourly price of the week, reaching €180.32/MWh on Sept. 16.

AleaSoft said lower solar and wind production, alongside increased electricity demand, in most major European markets contributed to the higher electricity prices, which came despite a decline in gas and CO2 prices. For the fourth week of September, AleaSoft said it expects prices to fall in most markets as wind and solar production recovers.

Solar production fell by 25% week on week in Portugal and 24% in Spain last week – the largest percentage declines recorded in these markets since early April. Solar production also decreased in France and Italy, but increased in Germany, following two weeks of decline.

For the week of Sept. 23, AleaSoft said solar energy production will likely increase in Spain, but decrease in Germany and Italy.

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