In early January 2026, European electricity markets experienced significant price increases, particularly in the first half of the month. Most markets reported rising weekly average prices, with the exception of the Iberian MIBEL market, which saw an 11% decline. The Nordic Nord Pool market led the charge with a remarkable 63% weekly increase, while other regions such as Germany’s EPEX SPOT and Italy’s IPEX markets noted rises of up to 52% and 11%, respectively.
By the week of January 5, average prices in many European markets surpassed €100/MWh, marking a notable shift in market dynamics. Spain and Portugal were outliers with averages of €78.47/MWh and €78.56/MWh. Italy recorded the highest weekly average at €119.39/MWh, while France and Germany’s averages fell between €101.14/MWh and €112.48/MWh.
The MIBEL market also reported the lowest daily prices across Europe for most of that week. On January 9, Spain achieved a low daily average of €53.40/MWh, closely followed by Portugal at €53.43/MWh. In contrast, all other markets maintained prices above €70/MWh, with Italy consistently exceeding €105/MWh throughout the week.
Germany set the record for the highest daily average price on January 8 at €154.12/MWh. Other countries including Belgium, Great Britain, Italy, and the Netherlands also reached their weekly peaks above €125/MWh on that day. Notably, the British N2EX market hit its highest level since February 2025 at €139.74/MWh, while France recorded its peak price since February 2025 at €128.21/MWh on January 5.
These price hikes were primarily influenced by escalating CO₂ emissions allowance prices coupled with increased electricity demand across Europe. Additionally, lower wind generation in Germany and reduced solar output from Germany, France, and Italy contributed to tighter supply conditions that further pushed prices upward. Conversely, enhanced wind and solar production in the Iberian Peninsula helped maintain comparatively lower prices in Spain and Portugal.
AleaSoft Energy Forecasting anticipates a potential decline in electricity prices across most European markets during the third week of January due to expected increases in wind production in Germany and decreasing demand in certain areas. However, challenges remain as diminishing solar output in Spain and Italy alongside reduced wind generation in those regions may create upward pressure on prices specifically within the Spanish, Italian, and Portuguese markets.
