High temperatures drive up electricity demand, prices in Europe

AleaSoft Energy Forecasting says higher average temperatures across major European electricity markets last week drove up power demand and prices. France and Germany, meanwhile, set new records for solar energy produced during a single day in August.

The weekly average electricity price rose across the main European electricity markets during the second week of August, according to analysis from AleaSoft Energy Forecasting.

The Spanish consultancy noted average price increases across the Belgian, British, Dutch, French, German, Italian, Nordic, Portuguese and Spanish electricity markets compared with the prior week.

Weekly averages exceeded €75 ($86.99)/MWh in all analyzed markets except the Nordic market at €28.00/MWh and France at €66.34/MWh. The Italian market recorded the highest average of the week, at €113.27/MWh.

AleaSoft said the upward trend was caused by higher electricity demand across most markets, which in turn was attributed to a rise in average temperatures across all analyzed countries.

The consultancy forecast electricity demand to decline this week, leading to lower electricity prices across most markets. Wind energy production is expected to rise, affecting selected markets.

In France and Germany, the average electricity price increased last week despite solar energy production rising by 13% and 8% week on week, respectively. Both markets reached new all-time highs for daily solar energy production during a single day in August last week. The German market generated 437 GWh and the French market 155 GWh on Aug. 11.

AleaSoft said it expects solar energy production to fall in Germany and Italy this week but increase in Spain.