In the week commencing February 23, significant fluctuations were observed in European electricity prices, with most major markets experiencing a peak on February 24 before entering a downward trend. This resulted in a decrease in weekly average prices across the board compared to the previous week. Notably, the British and Italian markets diverged from this trend, recording slight increases of 0.7% and 1.8%, respectively. In contrast, the Iberian markets saw substantial hikes, with Spain’s prices rising by 18% and Portugal’s surging by 55%. Other regions, including the Dutch and Belgian markets, witnessed declines ranging from 9.4% to 22%.
Throughout the week, the majority of markets maintained weekly average prices below €75/MWh. However, the British, Nordic, and Italian markets exceeded this threshold, reporting averages of €82.54/MWh, €84.21/MWh, and €106.67/MWh correspondingly. The lowest averages were recorded in France (€22.43/MWh), Portugal (€22.98/MWh), and Spain (€24.28/MWh), while Belgium and Germany reported prices between €57.08/MWh and €74.94/MWh.
Daily price analysis revealed that on February 27, both Belgium and France recorded their lowest daily average of the week at €12.70/MWh—marking Belgium’s lowest price since October 6, 2025. Additionally, Spain and Portugal experienced several instances of daily prices dipping below €20/MWh during this period. Conversely, Germany hit its lowest price since January 2, 2026, at €52.93/MWh on March 1, while the Nordic market reported €67.86/MWh as its lowest since January 3.
Italy consistently saw daily prices exceeding €100/MWh throughout the week of February 24. On that Tuesday, German, Dutch, and Nordic markets also surpassed this benchmark, with the Nordic market achieving the week’s highest daily average at €115.74/MWh.
The observed price dynamics were largely influenced by an uptick in solar production coupled with a decline in electricity demand across various markets, which facilitated lower pricing trends overall. However, a notable reduction in wind production within the Iberian Peninsula and Italy led to increased prices in these regions. Additionally, diminished hydroelectric output in Portugal contributed to these higher rates.
Looking ahead to the first week of March, analysts anticipate that gas price fluctuations will play a pivotal role in shaping European electricity prices. The ongoing conflict in Iran is expected to exert upward pressure on gas prices, potentially resulting in broader price increases across many markets. Furthermore, rising demand could further influence pricing trends. In Germany and France, a projected decline in wind production is likely to elevate prices; conversely, an increase in wind production within the Iberian Peninsula may provide downward pressure on Spanish and Portuguese electricity costs.
