European Electricity Prices Soar on High Gas Costs and Lower Solar Output
European electricity prices surged to their highest levels in months as high gas prices and lower solar output drove up costs. The weekly average electricity price crossed the €110 ($128.35)/MWh threshold across major European markets, with the Italian market seeing the largest increase at €168.31/MWh.
The TTF gas futures prices reached their highest level since January 2023, reaching a weekly maximum settlement of €65.86/MWh. AleaSoft Energy Forecasting attributes the upward trend to uncertainty over liquefied natural gas supply due to tensions in the Strait of Hormuz and low European gas reserves.
Solar energy production fell across France, Germany, Portugal, and Spain last week, but was offset by an increase in wind energy production in Portugal and Spain. AleaSoft expects a downturn in electricity prices this week as solar output is expected to rebound.