In the third week of January 2025, average electricity prices increased across most major European markets. The exceptions were the N2EX market of the United Kingdom and the Nord Pool market of the Nordic countries, where prices decreased by 13% and 58%, respectively. In contrast, the EPEX SPOT market in Germany saw the largest percentage increase, rising by 63%. Other markets analyzed by AleaSoft Energy Forecasting experienced price increases ranging from 12% in the IPEX market of Italy to 57% in Spain’s MIBEL market.
For the week of January 13, weekly average prices exceeded €130/MWh in nearly all European markets, with the Nordic market being the exception, registering the lowest average price of €21.25/MWh. The Italian and German markets had the highest weekly averages, at €147.43/MWh and €147.93/MWh, respectively. Other markets saw prices ranging from €132.86/MWh in Portugal to €142.98/MWh in the Netherlands.
Daily prices also reached significant highs during the third week of January. On January 15, the analyzed markets saw their highest daily averages, with the German and Dutch markets exceeding €200/MWh. Prices surged even further on January 20, with the German, Belgian, British, and Dutch markets all recording daily prices above €200/MWh. Germany reached the peak at €231.36/MWh, while Italy and France saw their highest prices since January 2023, at €192.84/MWh and €196.71/MWh, respectively.
The increase in electricity prices during this period was driven by a combination of factors: rising gas and CO2 emission allowance prices, reduced wind energy production, and higher demand across most markets. However, in Great Britain, where demand fell, electricity prices decreased.
Looking ahead to the fourth week of January, AleaSoft Energy Forecasting’s price forecasts suggest that prices will decline in most European electricity markets. This drop will likely be influenced by a forecasted increase in wind energy production and a reduction in demand in some markets, AleaSoft reports.
