In the final week of January, average prices across the major European electricity markets experienced a decline. The IPEX market in Italy saw the smallest decrease, dropping 7.8%, while the MIBEL market of Spain and Portugal witnessed the largest fall, with a 38% drop. Other markets observed price reductions ranging from 13% in the German EPEX SPOT market to 28% in the Nordic countries’ Nord Pool market.
During the week of January 27, most European electricity markets saw weekly averages below €120/MWh. However, the N2EX market in the United Kingdom and the Italian market posted the highest averages at €136.76/MWh and €141.95/MWh, respectively. On the other end of the spectrum, the Nordic market had the lowest average at €40.19/MWh. Prices in other markets ranged from €63.33/MWh in Portugal to €117.12/MWh in Germany.
In terms of daily prices, most markets saw the lowest prices at the beginning of the week, with prices gradually rising as the week progressed. The Nordic market recorded its lowest price on Saturday, February 1, at €11.44/MWh, the lowest price across all the analyzed markets. Portugal and Spain experienced their second and third lowest daily prices on Tuesday, January 28, at €16.37/MWh and €16.45/MWh, respectively. These were the lowest daily prices in these markets since the end of November 2024.
By Sunday, February 2, prices exceeded €120/MWh in nearly all markets except the Nordic region. The British, Spanish, French, and Portuguese markets saw their highest prices of the last week of January. This marked the first time since the end of 2024 for Spain and Portugal, and the first time since August 2024 for the UK, and March 2022 for France. The price rise was attributed to higher gas and CO2 prices, along with a decrease in wind energy production in Spain, France, and Portugal on that day.
In the week of January 27, a combination of lower demand and increased solar energy production contributed to the decline in weekly prices across European markets. Additionally, wind energy production rose in most markets.
Looking ahead, AleaSoft Energy Forecasting’s price forecasts indicate that electricity prices in European markets will increase during the first week of February, driven by higher demand and a reduction in wind energy production, AleaSoft reports.
