In early May, European electricity markets witnessed notable reductions in daily prices, primarily attributed to a surge in renewable energy generation and decreased demand. The second week of May saw average prices across major markets drop significantly compared to the previous week, with the British market experiencing a minimal decline of just 0.1%, while the French market faced a dramatic decrease of 40%. Other markets reported varied reductions, including a 7.5% drop in the Nordic region and a 17% decline in Spain.
By the week of May 11, most European electricity markets maintained average prices below €100/MWh. Exceptions included Italy and Britain, which recorded higher averages of €116.22/MWh and €119.33/MWh, respectively. In contrast, the French market posted the lowest price at €44.02/MWh, followed by Spain and Portugal at €49.83/MWh and €49.98/MWh, respectively. Prices in Belgium and Germany were closer to the upper range, with averages of €90.29/MWh and €98.87/MWh.
The Iberian Peninsula’s markets—Spain and Portugal—along with France consistently reported daily prices below €50/MWh during this period. Notably, France recorded its lowest daily average at €24.36/MWh on May 14, highlighting one of the weakest price levels among all analyzed regions.
Conversely, Italy and Britain faced persistent upward price pressure, with daily averages exceeding €100/MWh throughout the week. Other markets such as Germany, Belgium, the Netherlands, and parts of the Nordic region also crossed this threshold during at least one trading session. The Italian market peaked with the highest daily price of €136.36/MWh on May 15.
The decline in electricity prices during this period was primarily driven by increased wind and solar generation across Europe, coupled with lower electricity demand in various regions. However, forecasts indicate potential price increases in the third week of May due to expected declines in wind energy production and rising demand in certain markets. Additionally, gas prices are anticipated to play a crucial role in influencing future electricity price dynamics across Europe.
