The fourth week of March saw notable volatility in European electricity markets, characterized by high prices at the beginning of the week. Specifically, on March 23, many markets recorded elevated daily prices. However, as the week progressed, a general decline was observed, punctuated by brief price rebounds on Thursday and Friday. Most markets ultimately reported lower weekly averages, with the French market standing out as an exception, experiencing a 38% increase. In contrast, the Portuguese and Spanish markets faced dramatic reductions of 49% and 50%, respectively. Other regions also saw declines, with Italy’s prices dropping by 7.3% and Great Britain’s by 26%.
Throughout this period, average electricity prices across Europe predominantly remained below €90/MWh. The United Kingdom and Italy were notable exceptions, with average prices recorded at €93.54/MWh and €138.15/MWh, respectively. On the more affordable end of the spectrum, Portugal and Spain reported their weekly averages at €17.69/MWh and €17.78/MWh. Additionally, prices varied significantly across other markets: €45.10/MWh in the Nordic region to €88.04/MWh in Germany.
Particularly striking were the daily prices in the Iberian markets during late March, where values fell below €10/MWh from March 26 to March 29. On March 29, both Spain and Portugal achieved record-low daily averages of €0.18/MWh—historic lows for these markets. Furthermore, on March 25, Belgium and the Netherlands recorded their lowest daily prices since late October 2025 at €35.03/MWh and €42.24/MWh respectively; similarly, Germany and Great Britain reached their lowest levels since early January 2026 at €37.68/MWh and €48.12/MWh.
Conversely, the Italian market maintained higher price levels throughout the week with daily averages consistently above €110/MWh and peaking over €135/MWh for most days. Other regions including Germany, Belgium, Great Britain, France, and the Netherlands also experienced high-price sessions exceeding €110/MWh; notably, Italy recorded its highest daily average of the week at €165.24/MWh on March 23.
The downward pressure on electricity prices was largely attributed to declining gas prices observed early in the week. Additionally, increased solar and wind generation in Spain, Portugal, and Italy combined with lower electricity demand in the Iberian Peninsula contributed to substantial price reductions during this period.
Looking ahead into early April, forecasts from AleaSoft Energy indicate potential further declines in electricity prices across several markets due to anticipated weaker demand levels; however, fluctuations in gas prices are expected to remain a significant factor influencing overall trends within European electricity markets.
