In 2023, annual electricity market prices fell to levels similar to those of 2021, being mostly below €100/MWh. The drop in gas prices, together with the reduction in demand and the increase in renewable energy generation concerning 2022, led to a decrease in electricity market prices. During 2023, installed solar and wind energy capacity increased in most markets, thus favouring the increase in production using these technologies.
Solar photovoltaic, solar thermoelectric and wind energy production
The 2023 data reflect Europe’s efforts towards a green energy transition. All major European electricity markets registered an increase in installed solar energy capacity in 2023 compared to 2022. The Dutch market-led in growth by adding 7679 MW to the system, which represented an increase of 51%. Only in Germany and Italy, the installed solar capacity grew by less than 10%. According to REE data, 4582 MW were installed in Mainland Spain in 2023, representing an increase of 21%.
In most markets, increases in installed solar energy capacity resulted in higher annual production. In Portugal, solar energy production registered a year-on-year increase of 41%, while in Spain it grew by 31%. Italy had the smallest increase, up 8.3%. In the German market alone, solar energy production decreased by 0.1% compared to 2022, despite additional capacity.
Except for Germany, solar energy production in 2023 was historically the highest in all other markets analyzed at AleaSoft Energy Forecasting. In this context, Spain led the way with 41 TWh of solar energy generation in 2023.
In the case of wind energy, installed capacity also increased in most major European electricity markets in 2023 compared to 2022. Once again, the Dutch market-led with the highest growth, reaching 21%. The Spanish market had the smallest expansion, with an increase of 1.8%, adding 527 MW. There were no significant changes in installed wind energy capacity in the Portuguese market.
Year-on-year wind energy production increased in all major European electricity markets in 2023. In this case, France led with a 30% increase. The Spanish market registered the smallest increase, 2.5%, generating 61 TWh in 2023.
Except for Portugal, all remaining markets analyzed at AleaSoft Energy Forecasting set historically their highest wind energy production in 2023. Germany reached the highest record, with 143 TWh.
