Europe power prices ease in early April, but Iberia bucks the trend

Electricity markets across Europe entered early April with easing price pressure, as daily levels in most major hubs stayed below the prior week and dragged down weekly averages. For investors and traders, the shift matters because it reflects a changing balance between fuel costs, carbon pricing, demand conditions and renewable generation—factors that can quickly reprice risk across power curves.

Weekly averages: broad declines with clear outliers

During the second week of April, daily electricity prices in most major European markets remained below the levels recorded in the previous week. That pattern translated into lower weekly averages across the region. The main exceptions were the British, Portuguese and Spanish markets, where prices rose by 1.3%, 182% and 194%, respectively.

By contrast, France recorded the steepest decline, with prices falling by 52%. Other markets tracked by AleaSoft Energy Forecasting also saw decreases, ranging from a 5.3% drop in Germany to a 12% fall in Italy.

In the week of April 6 specifically, weekly average prices stayed below €75/MWh in most European markets. The Dutch, British and Italian markets exceeded that threshold, posting averages of €83.41/MWh, €86.03/MWh and €119.89/MWh. At the low end of the range were France (€33.90/MWh), Portugal (€35.64/MWh) and Spain (€36.57/MWh), while intermediate values extended from €58.34/MWh in the Nordic region to €74.29/MWh in Belgium.

Daily moves: Germany’s low point versus Italy’s sustained strength

The day-to-day picture reinforced how uneven conditions were across Europe. Germany recorded the lowest daily average of the week on Monday, April 6 at €3.04/MWh. On that same day, France and the Nordic market also traded below €10/MWh at €3.47/MWh and €9.03/MWh.

Italy stood out for persistence at high levels: its daily prices exceeded €100/MWh throughout the week. In the British market, prices also surpassed €100/MWh in most sessions.

By Friday, April 10, prices rose above €110/MWh in Germany, Belgium and the Netherlands. Italy recorded the highest daily average of the week at €129.67/MWh.

What drove prices lower—and why Iberia moved higher

AleaSoft Energy Forecasting linked much of the downward pressure to declining gas and CO₂ emission allowance prices combined with lower electricity demand and increased solar energy production across most European markets.

However, Spain and Portugal diverged from that broader pattern. In Iberia, rising demand alongside reduced wind and solar output contributed to higher electricity prices.

Outlook: expected rebound in week three

Looking ahead, AleaSoft forecasts that electricity prices are expected to rise in the third week of April. The anticipated increase is tied to higher demand, lower wind generation output and changes in gas price behavior as conditions evolve.

For market participants, this mix of easing fundamentals in much of Europe alongside localized tightening pressures in Iberia highlights how quickly power pricing can shift when renewable availability and fuel-linked costs move out of sync.