During the fourth week of August, weekly average electricity prices declined across most major European markets compared with the previous week. The Nordic market recorded the largest drop, with prices falling by 20%, followed by Portugal at 17% and the Netherlands at 16%. Germany, France and Spain also recorded significant declines, ranging from 12% in Spain to 14% in Germany. Belgium saw prices fall by 8.1%, while Great Britain posted the smallest decrease, at 2.2%. In contrast, Italy was the only market to record a weekly increase, with average prices rising by 15%.
For the week of August 24, Italy recorded the highest weekly average electricity price among the markets analyzed, reaching €194.14/MWh. Great Britain followed at €160.40/MWh. At the other end of the scale, the Nordic market registered the lowest weekly average, at €89.81/MWh, despite recording the largest percentage decline of the week. Portugal and Spain both averaged €106.46/MWh, while prices in the other markets analyzed by AleaSoft Energy Forecasting ranged from €121.15/MWh in France to €132.28/MWh in Belgium.
Daily price movements showed a particularly strong contrast between markets. Italian electricity prices remained above €190/MWh for almost the entire fourth week of August, falling below that threshold only on Sunday. Prices reached a weekly high of €205.52/MWh on August 27 and 28, the highest level recorded in Italy since August 6. Great Britain also experienced elevated prices, exceeding €160/MWh on several days, while Belgium surpassed that level on August 26 and 27.
Meanwhile, higher wind generation and lower electricity demand drove a sharp decline in daily prices on Saturday, August 29, across Germany, France, Belgium, the Netherlands and the Nordic market. The Nordic market recorded the lowest daily price, at just €15.04/MWh, while France saw its price fall to €65.33/MWh.
The broad increase in wind energy production played a major role in pushing European electricity prices lower during the fourth week of August. Italy once again stood out from the wider trend. Its relatively modest 4.6% increase in wind generation, combined with the largest rise in electricity demand at 15%, helped keep prices elevated compared with other European markets.
For the week beginning August 31, AleaSoft Energy Forecasting expects electricity prices to increase in the Spanish and Portuguese markets, in line with forecasts for lower wind energy production across the Iberian Peninsula. Prices are expected to decline in most of the other European markets analyzed. France is the exception, with forecasts pointing to a slight price increase, also influenced by lower anticipated wind generation, according to AleaSoft.
