In the second week of July, daily electricity prices increased significantly across most major European markets, with the strongest rises recorded in the Iberian Peninsula. As a result, weekly average prices climbed in most markets, led by Portugal with a 70% increase and Spain with a 61% rise. Other markets that recorded higher prices saw increases ranging from 6.8% in Italy to 18% in France. The Nordic market also registered a weekly increase of 7.1%.
However, some northern European markets moved in the opposite direction. Weekly average electricity prices declined in Germany, Belgium and the Netherlands, falling by 6.7%, 3.3% and 6.0% respectively. The different price movements reflected variations in renewable generation, demand levels, fuel costs and regional market conditions.
During the week of July 6, Italy recorded the highest average electricity price among the analysed markets, reaching €144.09/MWh. It was followed by Great Britain at €118.92/MWh and Belgium at €108.38/MWh. Prices in Portugal, Spain, the Netherlands and Germany ranged between €98.33/MWh in Germany and €107.68/MWh in Portugal. France recorded a weekly average of €92.42/MWh, while the Nordic market remained the least expensive, with an average price of €56.68/MWh.
Daily price differences remained significant throughout the week. The Nordic market recorded several days below €45/MWh, reaching the lowest daily average among the analysed markets on July 12 at €39.86/MWh. In contrast, daily prices in most other European markets remained above €70/MWh during the second week of July.
Several European electricity markets also recorded daily prices above €100/MWh during the week, with the Nordic region being the only exception. Italy registered the highest daily average among the analysed markets on July 9, reaching €153.73/MWh. Portugal recorded its highest price since March 11 on July 8, at €123.12/MWh, while Spain reached its highest level since the same date on July 10, with an average of €117.85/MWh. Prices in both Iberian markets increased further on July 13, although they remained below the levels observed on March 10.
The rise in electricity prices during the second week of July was mainly driven by higher natural gas and CO₂ emission allowance prices, which increased generation costs across European markets. Lower wind production in Spain, Portugal and Italy also contributed to stronger price increases in those markets. In France and Great Britain, higher electricity demand added further upward pressure. Meanwhile, increased wind and solar photovoltaic generation in Germany helped limit price growth and contributed to lower market prices.
For the third week of July, AleaSoft Energy Forecasting expects electricity prices to continue rising in most major European markets, supported by higher demand in some countries. Lower wind generation in Germany and France, declining solar production in Spain and continued movements in gas prices are expected to influence market developments and shape short-term electricity price trends across Europe, AleaSoft reports.
