In the fourth week of March, European electricity markets displayed notable fluctuations, with high daily prices observed at the start of the week. On March 23, many markets peaked; however, a general decline followed, punctuated by brief rebounds on Thursday and Friday. This trend resulted in lower weekly price averages across most regions. Notably, the French market diverged from this trend, marking a 38% increase, while the Iberian markets faced substantial declines, with Portugal and Spain experiencing drops of 49% and 50%, respectively. Other markets reported decreases ranging from 7.3% in Italy to 26% in Great Britain.
Throughout this period, average electricity prices in most European markets remained below €90/MWh. The exceptions were the United Kingdom, with an average of €93.54/MWh, and Italy at €138.15/MWh. On the lower end of the spectrum, Portugal and Spain recorded the most affordable weekly averages at €17.69/MWh and €17.78/MWh, respectively. Prices varied significantly across other regions, with the Nordic market averaging €45.10/MWh and Germany at €88.04/MWh.
The Iberian markets particularly stood out for their low pricing levels during this week, with daily prices falling below €10/MWh from March 26 to March 29. Remarkably, on March 29, both Spain and Portugal reached a record-low daily average of €0.18/MWh—historically unprecedented for these markets. Meanwhile, Belgium and the Netherlands recorded their lowest daily prices since late October 2025 at €35.03/MWh and €42.24/MWh, respectively. Additionally, Germany and Great Britain saw their lowest prices since early January 2026 at €37.68/MWh and €48.12/MWh.
In contrast to these declines, Italy’s electricity market maintained elevated price levels throughout the week, with daily averages consistently above €110/MWh and peaking over €135/MWh for most days. The highest recorded daily average occurred on March 23 in Italy at €165.24/MWh, while other countries including Germany, Belgium, Great Britain, France, and the Netherlands also experienced high-price sessions exceeding €110/MWh.
The downward trend in electricity prices was largely influenced by declining gas prices early in the week. In Spain, Portugal, and Italy, increased solar and wind generation capabilities coupled with reduced electricity demand in the Iberian Peninsula further facilitated price reductions that led to historically low weekly levels.
Looking forward, analysts from AleaSoft Energy Forecasting anticipate potential further declines in electricity prices across various markets in early April due to weaker demand patterns. However, movements in gas prices are expected to remain a crucial factor influencing overall trends within European electricity markets.
