Weekly European electricity prices fall slightly

Average electricity prices fell across most major European markets during the fourth week of January, according to AleaSoft Energy Forecasting’s latest analysis, but prices remained above €100 ($103.72)/MWh in all analyzed markets bar the Nordic market.

Average electricity prices fell across most major European markets last week, according to analysis by AleaSoft Energy Forecasting.

When compared to the week prior, weekly averages fell in the Belgian, Dutch, French, German, Spanish and Portuguese markets but increased in the British, Italian and Nordic markets.

The general downturn was down to a fall in electricity demand, which AleaSoft attributes to a rise in average temperatures, as well as an increase in wind energy production, and came despite gas and CO2 emissions allowance prices rising.

But despite the downward trend in prices, weekly averages remained above €100 ($103.72)/MWh in all analyzed markets except the Nordic market, which saw an average of €56.09/MWh. The Italian and British markets continued to record the highest averages of the week, at €153.97/MWh and €166.96/MWh respectively. 

Daily prices exceeded €200/MWh on January 20 in the Belgian, British, Dutch and German markets, with the British market reaching the highest price of the week, of €309.01/MWh, for the highest price seen since December 2022. The Nordic market also reached its highest daily price in over a year, registering €129.14/MWh on the same day.

During the last week of January, AleaSoft is predicting prices will continue to fall, influenced by a rise in solar and wind energy production, as well as a continued drop in demand.

AleaSoft found solar energy production increased in Italy last week when comparing the previous week, but fell across France, Germany, Portugal and Spain.

The consultancy is predicting this week will bring an increase in solar energy production across the German, Italian and Spanish markets.