In the third week of March, electricity prices across major European markets exhibited a complex interplay of trends, with a notable decline observed on March 19 and 20, followed by weekend reductions. This fluctuation resulted in a decrease in weekly average prices for most markets. However, the Italian, German, and British markets diverged from this trend, reporting increases of 1.0%, 7.1%, and 20%, respectively. In stark contrast, Spain and Portugal faced significant price drops, with reductions of 49% and 50%. Other markets also experienced price declines, ranging from 2.3% in the Netherlands to 42% in France.
During the week commencing March 16, the average electricity prices across most European markets surpassed €90/MWh. Notable exceptions included Portugal and Spain, with averages of €34.83/MWh and €35.32/MWh, respectively, while France and the Nordic region recorded averages of €46.90/MWh and €55.39/MWh. Italy led with the highest weekly average at €149.04/MWh, while Belgium and Great Britain saw prices ranging from €93.49/MWh to €126.57/MWh.
On March 19, Spain and Portugal reported the lowest daily averages among analyzed markets at €24.95/MWh. These markets also recorded daily prices below €30/MWh on March 18 and again on March 22; France followed suit on March 18, with the Nordic market dipping below this threshold on March 22.
Throughout this period, Italian market prices consistently remained above €135/MWh. Other significant markets such as Germany, Belgium, Britain, and the Netherlands also saw prices exceed €100/MWh during various sessions. Notably, Italy achieved the highest daily average on March 22 at €161.89/MWh, while the British market reached its peak since February 2025 at €157.88/MWh on March 20.
The upward pressure on European electricity prices during the week was primarily driven by rising gas prices; however, this was counterbalanced by lower CO₂ emission allowance prices, diminished electricity demand, and increased solar generation across many regions. Additionally, heightened wind generation in the Iberian Peninsula contributed to lower prices in Spain and Portugal.
Looking ahead to the fourth week of March, forecasts indicate potential price increases across major European electricity markets due to sustained high gas prices and rising demand levels. A decrease in solar generation in Germany coupled with reduced wind output in France may further support price escalations in those areas. Conversely, anticipated increases in wind generation in the Iberian Peninsula along with enhanced solar production in Spain are expected to apply downward pressure on prices within Spain and Portugal.
