During the fourth week of August, weekly average electricity prices declined across most major European markets compared with the previous week. The Nordic market recorded the largest decrease, with prices falling by 20%, followed by Portugal, where prices dropped by 17%, and the Netherlands, with a 16% decline. Prices also fell significantly in Germany, France and Spain, ranging from 12% in Spain to 14% in Germany. Belgium registered an 8.1% decrease, while the British market recorded the smallest decline, at 2.2%. In contrast, Italy was the only market to register an increase, with weekly average prices rising by 15%.
For the week of August 24, Italy recorded the highest weekly average electricity price among the markets analyzed, reaching €194.14/MWh, followed by Great Britain at €160.40/MWh. Meanwhile, the Nordic market registered the lowest weekly average, at €89.81/MWh, following the largest percentage decline of the week. The Portuguese and Spanish markets both averaged €106.46/MWh. In the remaining markets analyzed by AleaSoft Energy Forecasting, weekly average prices ranged from €121.15/MWh in France to €132.28/MWh in Belgium.
In terms of daily electricity prices, the Italian market remained above €190/MWh for almost the entire fourth week of August, falling below this level only on Sunday. Prices reached a weekly high of €205.52/MWh on August 27 and 28, marking Italy’s highest price since August 6. The British market also maintained elevated price levels throughout the week, with daily prices exceeding €160/MWh on several occasions. Belgium similarly surpassed this threshold on August 26 and 27.
In contrast, higher wind energy production and lower electricity demand contributed to a sharp decline in daily prices on Saturday, August 29, across the German, French, Belgian, Dutch and Nordic markets. On that day, the Nordic market recorded the lowest daily price among the markets analyzed, falling to €15.04/MWh, while the French market dropped to €65.33/MWh.
The widespread increase in wind energy production was a key factor behind the overall decline in European electricity prices during the fourth week of August. Italy was the main exception, as its relatively modest 4.6% increase in wind power generation, combined with the week’s largest rise in electricity demand of 15%, prevented prices from following the downward trend seen across the other markets.
Looking ahead to the week beginning August 31, price forecasts from AleaSoft Energy Forecasting indicate that electricity prices are expected to increase in the Spanish and Portuguese markets, in line with the anticipated decline in wind energy production across the Iberian Peninsula. Prices are forecast to decrease in most of the other European markets analyzed, while France is expected to see a slight increase, also influenced by lower wind energy production, AleaSoft reports.
