European heatwave drives up electricity prices
A heatwave across Europe drove up electricity demand last week, in turn pushing weekly average electricity prices higher, according to the latest analysis by AleaSoft Energy Forecasting.
The Spanish consultancy noted an increase in the weekly average electricity prices across the Belgian, British, Dutch, French, German, Nordic, Italian, Portuguese and Spanish markets when compared to the week prior.
Weekly averages exceeded €115 ($131.08)/MWh in all markets except the Nordic market, which recorded an average of €68.24/MWh, and the Portuguese and Spanish markets, which both registered an average of €87.37/MWh.
The highest average of the week was in the Belgian market, at €148.34/MWh, followed by the Italian market, at €114.67/MWh.
AleaSoft’s analysis found the Belgian market registered the highest daily average of the week on June 24, at €257.55/MWh, representing its highest price since December 2024. The same day, the Dutch market saw a daily average of €227.99/MWh, also its highest since December 2024.
The French and British markets reached their highest prices since January 2025, at €157.87/MWh and €184.65/MWh, while the German market registered its highest price since November 2025, at €207.84/MWh.
AleaSoft says the price hikes were caused by higher electricity demand driven by a heatwave across most analyzed markets. Solar energy production also fell in Italy, Portugal and Spain last week, while wind energy production also dropped in Germany and Italy.
The consultancy adds that gas price trends will continue to influence European electricity market prices. Last week’s upward trajectory in prices came despite TTF gas futures in the ICE market reaching a weekly minimum settlement price of €40.41/MWh, which AleaSoft says is the lowest recorded since April 21 this year. Gas future prices closed at €40.78/MWh for the week, 3.1% below the previous Friday.
AleaSoft is expecting the first week of July to bring a reduction in electricity prices, driven by lower demand in most markets.
Last week also saw Germany and Spain set new records for solar energy production. Germany recorded its highest figure for solar produced on a day in June on June 24, hitting 489 GWh, its second-highest result in history. On June 26, Spain set a new record for solar energy production, hitting 267 GWh.
AleaSoft forecasts solar energy production to increase in Italy this week, but decline in Germany and Spain.