Weekly average electricity prices fell across most major European electricity markets during the first week of July, reversing the strong increases recorded during the previous week when a heatwave pushed demand and wholesale prices higher. The decline was driven by lower consumption, stronger wind power production and changing weather conditions, which helped reduce pressure on European power systems.
The French electricity market registered the largest weekly price decline, with average prices dropping by 32%. Spain and Portugal followed with decreases of around 28%, while Germany, Belgium, the Nordic market and the Netherlands recorded declines between 21% and 24%. The British market saw prices fall by approximately 20%, whereas Italy experienced the smallest decline, with prices decreasing by 6.8%, reflecting greater price stability compared with other European markets.
Italy remained the highest-priced electricity market in Europe during the first week of July, despite the weekly correction, with an average price of €134.85/MWh. At the opposite end, the Nordic market recorded the lowest weekly average at €52.91/MWh. Spain and Portugal maintained relatively low price levels, averaging €63.20/MWh and €63.21/MWh, respectively, while prices across the other analysed markets ranged from €78.60/MWh in France to €112.08/MWh in Belgium.
Daily price movements showed continued volatility across European electricity markets during the first week of July. France, Spain, Portugal and the Nordic market recorded daily prices below €50/MWh in several trading sessions. The lowest daily average of the week was registered in the Nordic market on Sunday, 5 July, when prices dropped to €26.95/MWh.
Despite the broader downward trend, several markets experienced periods of elevated prices, especially at the beginning of the week. Daily prices exceeded €100/MWh in most analysed markets, although Spain, Portugal and the Nordic region remained below this level. The most significant price surge occurred on Tuesday, 30 June, when the Belgian and Dutch markets exceeded €200/MWh, with Belgium reaching the week’s highest daily average at €210.96/MWh.
The main factors behind the price decline were reduced electricity demand after the heatwave and stronger wind generation across Europe. Increased wind output improved renewable electricity availability and lowered dependence on more expensive thermal generation. However, weaker solar photovoltaic production in Germany, France, Spain and Italy limited the downward pressure on prices, preventing a stronger correction in some markets.
Italy and Belgium remained among Europe’s most expensive electricity markets, even after the weekly decline, while the Nordic market continued to record the lowest prices due to its traditional market structure and strong hydroelectric generation base. The differences between regional price levels reflected variations in generation mixes, renewable availability and cross-border market conditions.
According to AleaSoft Energy Forecasting, electricity prices are expected to increase in most European markets during the second week of July. The expected rise is linked to higher electricity demand and lower wind generation forecasts, while natural gas price developments will continue to influence wholesale electricity market trends across Europe, AleaSoft reports.
