In early March, European electricity markets experienced significant price increases, primarily driven by surging gas costs and diminished renewable energy production. The week commencing March 2 saw prices reach their peak on March 4 and 5, with most markets maintaining elevated levels throughout the week despite a slight decline later on. The Nordic market was an outlier, recording a minor decrease of 0.3%, while the Spanish, Portuguese, and French markets reported dramatic percentage increases of 134%, 142%, and 192%, respectively. Other regions also experienced notable weekly increases, with Italy observing a rise of 32% and Belgium by 81%.
Weekly average electricity prices surpassed €80/MWh across most major European markets. However, Portugal (€55.54/MWh), Spain (€56.85/MWh), and France (€65.50/MWh) were exceptions to this trend. The Italian market stood out with the highest weekly average at €141.28/MWh, while the Nordic region averaged €83.92/MWh and the British market reached €125.69/MWh.
On a daily basis, the lowest electricity prices were recorded on March 2 in Spain, at €18.36/MWh, closely followed by Portugal at €18.39/MWh. Both markets remained below €30/MWh on March 3, with France also registering similar low figures on Monday. Conversely, the Italian market consistently maintained daily prices above €120/MWh during this period. Notably, on March 4, Italy achieved the week’s highest daily average at €165.74/MWh—the highest since February 14, 2025—while the British market peaked at €143.71/MWh on the same day and further climbed to €149.95/MWh by March 9.
The surge in gas prices emerged as the primary catalyst for heightened electricity costs across Europe during this timeframe. Contributing factors included reduced wind energy production in Germany and France, alongside lower solar output in Spain, Italy, and Portugal. Additionally, increasing electricity demand in the British, Spanish, and Portuguese markets exacerbated the situation.
AleaSoft Energy Forecasting anticipates that gas prices may remain elevated or potentially rise further in the second week of March due to ongoing tensions related to the Iranian conflict, which could exert additional upward pressure on European electricity prices. This outlook is compounded by expected higher demand across most markets as well as continued reductions in solar production in Germany and diminished wind output in both the Iberian Peninsula and Italy.
