Increased solar helps lower European electricity prices

AleaSoft Energy Forecasting’s latest analysis finds a rise in solar energy production helped to bring down electricity prices in some European markets last week. Towards the start of the month, France, Italy, Portugal and Spain all set new records for solar produced on a day in August.

The weekly average electricity price during the week commencing July 28 fell across major European electricity markets, according to analysis by AleaSoft Energy Forecasting.

Compared to the week prior, the Spanish consultancy noted a drop in the weekly average electricity price across the Belgian, British, Dutch, French, German, Italian, Nordic, Portuguese and Spanish markets.

Weekly averages were below €80 ($93.21)/MWh in all markets bar the British and Italian markets, where averages stood at €88.77/MWh and €104.28/MWh respectively. The Nordic market reached the lowest weekly average, at €29.95/MWh.

In France, Germany, Italy and Spain, a week-on-week increase in solar energy production helped to lower electricity prices. AleaSoft says falling electricity demand across most markets also contributed to the lower prices, alongside increased wind energy production in selected markets.

The consultancy is forecasting that the week commencing August 4 will see electricity prices increase in France, Italy, Spain and Portugal, influenced by a drop in wind energy production. Further price declines are anticipated in the other analyzed markets, with increased solar energy production contributing to lower prices in some markets.

On August 1, the Italian, Portuguese and Spanish markets set new records for solar production during a day in August, reaching 143 GWh, 27 GWh and 196 GWh respectively. A day later, the French market recorded the same feat when it registered 133 GWh.

AleaSoft is forecasting that the week commencing August 4 will also bring an increase in solar energy in Germany, Italy and Spain.