The European electricity market experienced varied price movements during the week of February 23, with most major markets peaking on February 24 before entering a decline. This led to a decrease in weekly average prices in several regions, while the British and Italian markets were notable exceptions, reporting increases of 0.7% and 1.8%, respectively. The Iberian Peninsula also saw significant price rises, with Spain’s electricity prices climbing by 18% and Portugal experiencing an even steeper increase of 55%. Meanwhile, other markets such as Belgium and the Netherlands recorded declines ranging from 9.4% to 22%.
Throughout this week, the majority of European markets maintained average prices below €75/MWh. However, the British, Nordic, and Italian markets exceeded this threshold with averages of €82.54/MWh, €84.21/MWh, and €106.67/MWh, respectively. The lowest weekly averages were reported in France at €22.43/MWh, followed closely by Portugal at €22.98/MWh and Spain at €24.28/MWh. Other regions displayed prices between €57.08/MWh in Belgium and €74.94/MWh in Germany.
Daily price analysis revealed that on February 27, both Belgium and France recorded their lowest daily average of the week at €12.70/MWh, marking Belgium’s lowest daily price since October 6, 2025. Additionally, Spain and Portugal noted several instances where daily prices dipped below €20/MWh during the same week. On March 1, Germany reached a low of €52.93/MWh—its lowest since January 2, 2026—while the Nordic market recorded a price of €67.86/MWh.
In contrast to these lower trends, Italy consistently saw daily prices remaining above €100/MWh throughout the fourth week of February. On February 24, the German, Dutch, and Nordic markets also surpassed this mark; notably, the Nordic market achieved its highest daily average for the week at €115.74/MWh.
Price fluctuations were primarily driven by increased solar energy production coupled with a decrease in overall electricity demand across many markets that supported lower pricing trends. However, a significant drop in wind energy output within both the Iberian Peninsula and Italy resulted in higher prices for Spain, Italy, and Portugal due to reduced generation capacity from renewable sources like hydroelectric power in Portugal.
Looking ahead to the first week of March, analysts anticipate that gas price movements will play a critical role in shaping European electricity costs. The potential escalation of geopolitical tensions in Iran could lead to higher gas prices which may further increase electricity prices across various markets. Additionally, rising demand is expected to exert upward pressure on pricing dynamics; specifically in Germany and France where decreased wind production is anticipated to elevate costs further. Conversely, an anticipated uptick in wind production within the Iberian Peninsula may provide some downward pressure on Spanish and Portuguese electricity prices.
