In the second week of July, electricity prices increased significantly across most major European markets, with the strongest gains recorded in the Iberian Peninsula. Weekly average prices rose in the majority of markets, led by Portugal with a 70% increase and Spain with a 61% rise. Other markets that experienced higher prices recorded increases ranging from 6.8% in Italy to 18% in France, while the Nordic market also saw prices climb by 7.1%.
In contrast, electricity prices declined in several northern European markets. Germany, Belgium and the Netherlands registered weekly average price decreases of 6.7%, 3.3% and 6.0%, respectively. The different price movements reflected variations in renewable generation, electricity demand, fuel costs and regional market conditions.
During the week beginning July 6, Italy recorded the highest average electricity price among the analysed European markets, reaching €144.09/MWh. Great Britain followed with an average of €118.92/MWh, while Belgium recorded €108.38/MWh. Prices in Portugal, Spain, the Netherlands and Germany ranged between €98.33/MWh in Germany and €107.68/MWh in Portugal. France registered an average of €92.42/MWh, while the Nordic market remained the most affordable, with a weekly average of €56.68/MWh.
Daily price movements also showed significant differences between markets. The Nordic market recorded several daily averages below €45/MWh, reaching the lowest daily price among the analysed markets on July 12 at €39.86/MWh. Meanwhile, daily prices in most other European markets remained above €70/MWh throughout the second week of July.
Several European electricity markets recorded daily prices above €100/MWh during the week, with the Nordic region being the only exception. Italy registered the highest daily average among the analysed markets on July 9, reaching €153.73/MWh. Portugal recorded its highest price since March 11 on July 8, at €123.12/MWh, while Spain reached its highest level since the same date on July 10, with an average of €117.85/MWh. Prices continued to rise in both Iberian markets on July 13, although they remained below the levels observed on March 10.
The increase in electricity prices was mainly driven by higher natural gas and CO₂ allowance prices, which raised generation costs across European power markets. Lower wind generation in Spain, Portugal and Italy further supported price increases in those countries. Higher electricity demand also contributed to upward pressure in France and Great Britain, while stronger wind and solar photovoltaic production in Germany helped reduce price levels.
Looking ahead to the third week of July, AleaSoft Energy Forecasting expects electricity prices to continue increasing across most major European markets, supported by higher demand in some regions. Lower wind generation in Germany and France, reduced solar production in Spain and movements in natural gas prices are expected to remain key factors influencing short-term electricity price developments across Europe, according to AleaSoft Energy Forecasting.
