Weekly average electricity prices decreased across the majority of Europe’s main electricity markets during the first week of July, reversing the strong upward movement seen in the previous week when a heatwave pushed consumption and wholesale prices higher. The decline reflected a combination of lower electricity demand, improved wind generation and changing weather conditions, which reduced pressure on European power systems.
The French electricity market recorded the largest weekly price decline, with average prices falling by 32%, while Spain and Portugal both registered decreases of around 28%. Germany, Belgium, the Nordic market and the Netherlands saw price reductions between 21% and 24%, while the British market recorded a decline of approximately 20%. Italy showed the smallest decrease among the analysed markets, with prices falling by 6.8%, highlighting stronger price resilience compared with other European markets.
Italy remained the most expensive electricity market in Europe during the first week of July, despite the weekly decline, with an average price of €134.85/MWh. In contrast, the Nordic market recorded the lowest weekly average at €52.91/MWh. Spain and Portugal maintained lower price levels, with averages of €63.20/MWh and €63.21/MWh, respectively, while prices in the remaining analysed markets ranged from €78.60/MWh in France to €112.08/MWh in Belgium.
Daily price developments showed significant volatility across European electricity markets during the first week of July. Several markets, including France, Spain, Portugal and the Nordic region, recorded daily prices below €50/MWh during certain trading sessions. The lowest daily average of the week was recorded in the Nordic market on Sunday, 5 July, when prices fell to €26.95/MWh.
Despite the overall downward trend, some European markets continued to experience high-price periods, particularly at the beginning of the week. Daily prices exceeded €100/MWh in most analysed markets, while Spain, Portugal and the Nordic market remained below this level. The strongest price spike occurred on Tuesday, 30 June, when the Belgian and Dutch markets surpassed €200/MWh, with Belgium reaching the highest daily average of the week at €210.96/MWh.
The main drivers behind the decline in electricity prices were weaker demand after the heatwave and stronger wind power production across Europe. Rising wind generation increased renewable electricity availability and reduced the need for more expensive thermal generation. However, lower solar photovoltaic output in Germany, France, Spain and Italy limited the downward pressure on prices, preventing a sharper decline in some markets.
Italy and Belgium continued to rank among Europe’s highest-priced electricity markets despite the weekly correction, while the Nordic market remained the lowest-priced region, supported by its typical market structure and strong contribution from hydroelectric resources. These price differences continued to reflect variations in generation mixes, renewable availability and regional market conditions.
Electricity price forecasts from AleaSoft Energy Forecasting indicate that prices are expected to rise in most European markets during the second week of July. The anticipated increase is linked to higher electricity demand forecasts and lower wind generation expectations, while natural gas price movements will remain an important factor influencing wholesale electricity market trends across Europe, AleaSoft reports.
