Several European nations reached new milestones in solar energy generation last week, according to data from AleaSoft Energy Forecasting. Germany, France, Spain, and Portugal all recorded their highest-ever daily solar production levels between May 28 and May 29. Italy also contributed to this trend, setting a new national record on May 26. While increased solar and wind output helped lower electricity prices in several northern and central European markets, other regions experienced price hikes due to fluctuating wind conditions and rising demand, highlighting the complex interplay between renewable energy production and broader market dynamics.
Germany led the surge with 503 GWh of solar energy produced on May 28, the same day France hit a record of 179 GWh. Spain and Portugal followed suit the next day, generating 265 GWh and 32 GWh, respectively. These achievements follow a strong performance earlier in May, during which France, Germany, Italy, and Portugal had already established new daily solar production benchmarks. Italy continued its momentum last week, reaching 161 GWh of solar output on May 26.
The impact of this renewable energy influx was evident in electricity pricing. Markets in Belgium, Britain, the Netherlands, Germany, and the Nordic region saw average weekly electricity prices decline, largely driven by the combination of high solar and wind production alongside reduced demand. Conversely, France, Portugal, Spain, and Italy faced a week-on-week increase in average electricity prices, which analysts attributed to a drop in wind energy generation and higher overall power consumption.
Across the analyzed regions, most markets maintained average electricity prices below €95/MWh, with the Nordic market recording the lowest at €48.37/MWh. In contrast, the British and Italian markets saw higher averages of €121.97/MWh and €123.58/MWh. Looking ahead, AleaSoft anticipates a general rise in electricity prices across most markets this week, citing expectations of lower solar production and increased demand.
Meanwhile, the TTF gas futures market experienced volatility throughout the final week of May. Prices settled at their lowest point of €45.43/MWh on May 25, before climbing to €47.47/MWh the following day. By the end of the week, prices settled at €46.00/MWh, marking a 5.5% decrease from the previous week. AleaSoft noted that while potential agreements between the United States and Iran exerted downward pressure on gas prices, low European storage levels and high temperatures kept costs from falling further.