In the fourth week of May, average electricity prices decreased in most major European markets compared to the previous week. The MIBEL markets of Spain and Portugal saw the most significant percentage drops, with prices falling by 46 percent and 48 percent, respectively. In contrast, some markets experienced slight increases. Italy’s IPEX market recorded a 0.8 percent rise, while the EPEX SPOT markets of Germany, the Netherlands, and Belgium saw increases of 0.7 percent, 1.0 percent, and 1.6 percent, respectively. In the other markets analyzed by AleaSoft Energy Forecasting, prices dropped between 8.4 percent in the United Kingdom’s N2EX market and 17 percent in the French EPEX SPOT market.
During the week of May 19, weekly average prices remained below €70 per megawatt-hour in most European electricity markets. Exceptions included the British and Italian markets, where averages reached €84.50/MWh and €96.54/MWh, respectively. The lowest weekly averages were recorded in Spain and Portugal, with €9.80/MWh and €13.21/MWh. Prices in the other analyzed markets ranged from €18.32/MWh in the Nord Pool market of the Nordic countries to €69.09/MWh in the German market.
On Sunday, May 25, daily prices fell below €20/MWh in most markets. The British market registered the lowest daily average price among all analyzed markets at €1.55/MWh, marking its lowest level since May 24, 2020. On the same day, Italy recorded its lowest daily price since May 17, 2021, at €47.74/MWh, which remained significantly higher than prices in other markets.
Looking at hourly prices, most European markets experienced negative hourly values during the fourth week of May. Exceptions included the Italian, Nordic, and Portuguese markets. On Sunday, May 25, from 13:00 to 14:00, the British market recorded the lowest hourly price of the week at €35.18/MWh, its lowest hourly price since July 17, 2023.
The decline in prices during the week of May 19 was primarily driven by increased wind energy production across most European markets. Additionally, higher solar energy production in the Iberian Peninsula contributed to price reductions in the MIBEL market. However, a rise in weekly gas prices led to slight increases in markets such as Germany, Belgium, Italy, and the Netherlands.
According to AleaSoft Energy Forecasting, prices are expected to fall in most European electricity markets during the final week of May. However, prices in the Iberian and Italian markets are projected to rise due to reduced wind and solar energy production in those regions, AleaSoft reports.
