Negative Electricity Prices Reappear Across Europe

According to the latest analysis from AleaSoft Energy Forecasting, negative electricity prices were recorded in most major European markets during the third week of April, with the phenomenon particularly notable over the Easter weekend. In Portugal and Spain, prices hit zero or dipped into negative territory every day throughout the week. 

The Spanish consultancy highlighted that negative prices were observed in the Belgian, Dutch, French, German, Portuguese, and Spanish markets. While these occurrences were especially concentrated around Easter, the Iberian markets of Portugal and Spain consistently experienced zero or negative prices daily.

This marks a sharp contrast to the previous week, during which AleaSoft reported no negative prices in any of the markets it monitors. Meanwhile, the British, Italian, and Nordic markets managed to avoid negative pricing last week.

AleaSoft noted that the average electricity price declined last week in the British, French, Italian, Nordic, Portuguese, and Spanish markets, but increased in the Belgian, Dutch, and German markets.

Among all, the Portuguese and Spanish markets recorded the lowest average prices, at €12.90 ($14.67)/MWh and €13.59/MWh, respectively. Despite recording its lowest daily price since last July — €82.34/MWh on April 17 — the Italian market maintained the highest weekly average at €101.87/MWh.

The Dutch market saw the lowest hourly price of the week, plunging to -€57.90/MWh on April 20 at 13:00. On the same day, Portugal set a new all-time record for its minimum price at -€4.99/MWh.

AleaSoft attributed the fall in electricity prices to reduced demand and a surge in wind power generation across several markets. However, it expects prices to rise in most markets this week, driven by increased electricity demand and a decline in wind energy production.

Additionally, the consultancy reported a drop in solar energy output across France, Germany, Italy, Portugal, and Spain last week. Looking ahead to the fourth week of April, solar production is forecasted to rebound in Germany and Spain but continue its decline in Italy.