Electricity prices in European markets rose in February, driven by gas price increases and a drop in wind energy production
Electricity prices across major European markets
As the 2025 Energy Bill begins its legislative journey in Parliament—with the first hearings scheduled this week—European electricity markets are facing a surge in prices. February saw price increases across electricity exchanges in Germany, Belgium, France, the Netherlands, Italy, and the Nordic countries. The Italian IPEX market stood out with consistently higher-than-average values, despite a slight decline in the last week of February.
This scenario was anticipated, but it remains challenging. In Italy, the PUN Index averaged €150.36/MWh last month, reaching its highest level since March 2023. While current prices are lower—around €122/MWh—market volatility continues to raise concerns. And Italy is not alone in this trend.
According to the latest update from AleaSoft Energy Forecasting, electricity prices in most major European electricity markets increased both compared to January and year-over-year in February 2025, surpassing €105/MWh in most cases.
The role of renewables and gas
While solar power generation hit a record high for February in the analyzed countries—peaking at 81 GWh in Italy on Friday, February 21—wind energy production declined both annually and compared to January 2025. In Italy, wind turbines recorded their lowest February output in the past 13 years.
At the same time, electricity demand increased in most major European electricity markets compared to the same period in 2024, though it remained lower than in January. Meanwhile, TTF gas futures on the ICE short-term market reached their highest monthly average since March 2023.
The average price of CO₂ emission allowances on the EEX market for December 2025 contracts was lower than in January but higher than in February 2024.
What’s next?
According to AleaSoft Energy Forecasting, electricity prices are expected to drop in early March across most European electricity markets. The decline will be driven by increased solar and wind energy production in many analyzed regions. Additionally, electricity demand is expected to decrease in some markets, further influencing price trends.
