Rise in electricity prices

The trends in electricity prices in the largest European markets during the third week of April are increasing, according to the analysis of AleaSoft Energy Forecasting.

The Spanish consultancy recorded weekly average increases in the price of electricity in the markets of Belgium, Britain, France, the Netherlands, Germany, Italy and Scandinavia. The Nord Pool market, which includes the Nordic countries, saw the biggest percentage price increase at 111%, followed by a 72% jump in the Belgian market. The exceptions were the Portuguese and Spanish markets, which recorded weekly average electricity price decreases of 29% and 33%, respectively.

Throughout the third week of April, weekly averages exceeded €50 /MWh in most European markets analyzed. The highest weekly averages were recorded in the German and Italian markets, at €70.93/MWh and €91.59/MW, respectively. The markets of Portugal, Spain and France are excluded, with averages of €4.85/MWh, €5.09/MWh and €21.38/MWh, respectively. The Portuguese and Spanish markets are now at their lowest prices for 11 consecutive weeks. The Belgian market reached its lowest hourly price, hitting -€35.00/MWh on April 21 between 11:00 (CEST) and 12:00.

What is the reason for the increase?

AleaSoft attributed the increase in average electricity prices in most markets to increases in the average price of natural gas and CO2 emission prices, along with increased demand for electricity in most markets. Higher electricity demand coincided with a drop in average temperatures in most of the markets analyzed. AleaSoft predicted that electricity prices may continue to rise in the fourth week of April due to higher electricity demand and a drop in wind generation .

Solar power

Reductions in solar power production of 25%, 9.2% and 0.3% were recorded in the markets of Germany, Italy and Portugal. For the fourth week of April, according to AleaSoft solar production could increase again in Germany, but decrease in Italy and Spain.