In February 2024, the monthly average price was less than €65/MWh in most major European electricity markets. The exceptions were the averages of the N2EX market of the United Kingdom and the IPEX market of Italy, which were €69.44/MWh and €87.63/MWh, respectively. The MIBEL market of Portugal and Spain registered the lowest monthly prices, €39.86/MWh and €40.00/MWh, respectively. In the rest of the European electricity markets analyzed at AleaSoft Energy Forecasting, the averages were between €50.92/MWh of the Nord Pool market of the Nordic countries and €63.89/MWh of the EPEX SPOT market of the Netherlands.
In February, monthly prices of European electricity markets continued the downward trend that began in 2023. Compared to January, average prices decreased in all European electricity markets analyzed at AleaSoft Energy Forecasting. The Spanish and Portuguese markets registered the largest drop, 46% in both cases. On the other hand, the smallest decrease, 12%, corresponded to the Italian market. In the rest of the markets, prices fell between 17% in the British market and 25% in the Nordic market.
Comparing February’s average prices with those registered in the same month of 2023, prices also fell in all analyzed markets. In this case, the Spanish and Portuguese markets also had the largest decline, 70%. In contrast, the lowest price drop, 38%, was in the Nordic market. In the remaining markets, price declines ranged from 46% in the Italian market to 61% in the French market.
As a result of these declines, February prices in most European electricity markets were the lowest since the first half of 2021. The exception was the Nordic market, which had the lowest prices in the last four months. In the case of the MIBEL market of Spain and Portugal, monthly prices of February 2024 were the lowest prices registered after February 2021 averages. The British market and the Italian market reached the lowest prices since March and June 2021, respectively. For the German, Belgian, French and Dutch markets, February 2024 prices had the lowest values since May 2021.
In February 2024, the fall in the average price of gas and CO2 emission rights, the decline in electricity demand in most markets and the general increase in wind energy production led to a year-on-year price decrease in European electricity markets. In addition, solar energy production also increased compared to the previous year on the Iberian Peninsula.
On the other hand, in February 2024, the average price of gas and CO2 emission rights, as well as demand in most markets, also decreased compared to the previous month. Solar energy production increased compared to January, which is normal for the season. In addition, wind energy production grew in most analyzed markets. These factors contributed to the decline in European electricity market prices.
