In the third week of March, European electricity markets witnessed a complex interplay of price movements, with notable fluctuations across various regions. While the overall trend showed a decline in average prices during the week, specific markets such as Italy, Germany, and Great Britain recorded upward shifts. This period saw average prices dip on March 19 and 20, contributing to an overall decrease in many markets for the week.
Weekly average prices surpassed €90/MWh in most European electricity markets, with Italy leading at €149.04/MWh. In contrast, Portugal and Spain reported significant reductions, with average prices plummeting by 49% and 50%, respectively. Other markets also experienced declines; France’s prices dropped by 42%, while the Dutch market saw a more modest decrease of 2.3%. The Nordic region maintained lower averages compared to other parts of Europe, with figures around €55.39/MWh.
Daily price movements revealed that on March 19, Spain and Portugal had the lowest market averages at €24.95/MWh. These countries also recorded daily prices below €30/MWh on two occasions during the week. France joined this trend by falling below this threshold on March 18, while the Nordic market followed suit on March 22.
Throughout this period, Italian market prices consistently remained above €135/MWh, reflecting sustained demand pressures. Meanwhile, other key markets such as Germany, Belgium, and the Netherlands also experienced intermittent sessions above €100/MWh. Notably, Italy achieved its highest daily average on March 22 at €161.89/MWh, while Great Britain reached its peak since February 2025 at €157.88/MWh on March 20.
The fluctuations in electricity pricing can be attributed to several factors influencing supply and demand dynamics across Europe. Rising gas prices exerted upward pressure on electricity costs; however, this was counterbalanced by lower CO₂ emission allowance prices and a reduction in electricity demand due to increased solar generation in many areas. Additionally, robust wind generation in the Iberian Peninsula contributed to price reductions in Spain and Portugal.
Looking ahead to the fourth week of March, forecasts suggest potential price increases across major European markets fueled by higher gas costs and anticipated increases in demand. Specific challenges may arise from reduced solar generation in Germany and diminished wind output in France that could support upward price movements there. Conversely, enhanced wind generation capabilities in the Iberian Peninsula alongside increased solar production in Spain may continue to exert downward pressure on prices within those regions.
