In early March, European electricity markets experienced significant price surges, particularly during the first week of the month. By March 4 and 5, prices reached their peak values for the week, although a slight decline occurred later on. Despite this decrease, weekly average prices remained elevated compared to the previous week across most markets. The Nordic market was an exception, showing a minor decrease of 0.3%.
The most pronounced increases were seen in Spain, Portugal, and France, where prices surged by 134%, 142%, and 192%, respectively. Other markets reported weekly increases ranging from 32% in Italy to as much as 81% in Belgium. Overall, the trend indicates a market under pressure with fluctuating supply and demand dynamics.
Throughout this week, weekly average electricity prices surpassed €80/MWh in most major European markets. Notable exceptions were Portugal at €55.54/MWh, Spain at €56.85/MWh, and France at €65.50/MWh. The Italian market recorded the highest weekly average at €141.28/MWh, while other markets ranged from €83.92/MWh in the Nordic region to €125.69/MWh in Britain.
Daily price assessments revealed that on March 2, Spain had the lowest daily average at €18.36/MWh, closely followed by Portugal at €18.39/MWh. Both countries maintained prices below €30/MWh on March 3, with France also reporting similar figures on March 2.
Contrastingly, Italy maintained daily electricity prices above €120/MWh throughout the first week of March. Other regions such as Germany, Britain, Belgium, and the Netherlands also reported instances of prices exceeding €100/MWh during various sessions. On March 4 alone, Italy recorded its highest daily average for the week at €165.74/MWh—the highest figure since mid-February of the previous year—while the British market peaked at €143.71/MWh on the same day.
The primary factor driving these rising electricity prices has been an increase in gas costs across Europe during this period. Additionally, lower wind energy production in Germany and France combined with reduced solar output from Spain, Italy, and Portugal added further strain to supply levels. Coupled with increasing electricity demand in British, Spanish, and Portuguese markets, these elements have collectively contributed to upward price pressures.
Looking forward into mid-March, projections from AleaSoft Energy Forecasting suggest that gas prices may either remain elevated or increase further due to ongoing geopolitical tensions related to the Iranian conflict. This situation is expected to sustain upward pressure on European electricity prices alongside anticipated higher demand across various markets and continued low solar production in Germany along with diminished wind output in both the Iberian Peninsula and Italy.
