European electricity markets saw strong volatility during the third week of May, with daily prices reaching their peak on Monday, May 18. Prices then eased gradually toward the end of the week. Weekly average prices rose across most markets despite the intra-week correction. The Spanish, Portuguese and Nordic markets were exceptions, with declines of 2.7%, 2.9% and 19%, respectively.
France recorded the largest weekly increase at 11%. Other markets posted gains ranging from 3.3% in Great Britain to 7.9% in Belgium. The pattern reflected a mix of regional outcomes across the European system during the same period.
Weekly averages above €75/MWh amid tight conditions
For the week of May 18, most European markets reported average prices above €75/MWh. Tight system conditions were cited as a factor across the continent. Spain, Portugal and France had lower weekly averages of €48.48/MWh, €48.53/MWh and €48.94/MWh, respectively. Italy and Great Britain were among the highest-priced markets at €116.31/MWh and €123.33/MWh.
Other weekly averages varied by region, from €75.79/MWh in the Nordics to €105.42/MWh in Germany. The range highlighted significant divergence between markets during the same week. This spread was consistent with the broader volatility seen in daily pricing.
Daily dispersion includes sub-€30/MWh moves on May 24
Price dispersion was pronounced on a daily basis across Europe. On Sunday, May 24, several markets including Spain, France, the Nordics and Portugal traded below €30/MWh. The Nordic market reached a weekly low of just €8.40/MWh, its weakest level since early April. Central and Western European hubs remained comparatively tight during the same period.
Germany, Great Britain, Italy and the Netherlands frequently traded above €100/MWh throughout the week. The British market peaked on May 18 at €141.25/MWh. Germany, Belgium and the Netherlands also posted their highest daily levels since early April, exceeding €130/MWh each.
Gas price pressure and wind variability shape price direction
The upward pressure during the week was primarily linked to higher gas prices and weaker wind generation. Demand fluctuations provided additional support in selected markets during intraday trading. These drivers supported bullish sentiment across most European hubs even as some sessions saw intermittent corrections.
AleaSoft Energy Forecasting pointed to further potential price increases in France, Spain, Italy and Portugal in the fourth week of May. The forecast cited lower wind output alongside higher demand conditions as supporting factors for those markets.
The outlook also indicated downward pressure on prices in Germany for the fourth week of May. This was attributed to weaker demand together with stronger wind and solar generation, while changing gas price trends were expected to remain a key driver of overall European electricity market dynamics .
