AleaSoft Energy Forecasting reported that electricity prices surged across major European markets last week due to a combination of higher gas prices and increased electricity demand. The analysis highlighted that, with the exception of the Nordic market, the average weekly price in all other markets surpassed €75 ($82.90) per megawatt-hour (MWh).
In particular, Germany and the Netherlands experienced the highest hourly electricity prices of the week on August 29, reaching €289.27/MWh and €278.49/MWh, respectively. These prices marked the highest levels recorded in Germany since late June and in the Netherlands since September 2023. Despite these peaks, both markets, along with Belgium and the Nordic region, also saw instances of negative electricity prices, with Belgium recording the lowest at -€53.61/MWh on September 1.
European Electricity Prices Surge Amid Rising Gas Costs and Demand, AleaSoft Reports
The analysis attributed the increased electricity prices to several factors: rising weekly average gas prices, a spike in electricity demand, and reduced wind energy production across most markets. AleaSoft forecasts that prices are likely to continue rising in many regions during the first week of September, although a predicted drop in demand could potentially lead to lower prices in Spain and Portugal.
Solar energy production showed mixed results last week. In Germany, it increased by 11% week-on-week, ending a three-week decline. Conversely, Spain and Portugal saw decreases in solar production by 13% and 11%, respectively.
Looking ahead to the first week of September, AleaSoft expects a further decline in solar energy production in Germany and Italy, but an increase in Spain. This shift is anticipated to counter recent trends in solar energy production observed over the past three weeks.
