Wholesale electricity prices across Europe surged above €300 per megawatt-hour at the start of November, as colder weather lifted demand and weaker renewable generation tightened power supplies across the continent.

On 9 November, Germany reached €345.64 per megawatt-hour, while the Netherlands climbed to €342.43, their highest daily prices since December 2024. Belgium reached €335.27, France €334.12 and Italy €313.51, levels not seen in those markets since December 2022. Britain rose to €301.95 per megawatt-hour.

Prices climbed even higher during the evening peak on 9 November, topping €600 per megawatt-hour in some markets as wind generation slumped across the continent, according to market reports.

Demand rises as temperatures fall

Electricity demand increased across all of the major markets analysed as temperatures declined. France experienced the largest temperature drop, at 3.5 degrees Celsius compared with the previous week, and French demand rose 14 percent. Demand in Britain rose 9.5 percent and in Germany by 6.8 percent.

Forecasters expect temperatures across the region to sit one to three degrees Celsius below seasonal averages this week, adding further strain on heating demand.

Renewable output drops sharply

The tightening was driven principally by the combination of rising consumption and lower renewable output. Solar production fell sharply in the first week of November, with Italy recording a 29 percent weekly decline, followed by France at 23 percent and Germany at 22 percent.

Wind generation also weakened for a second consecutive week in Italy, France and Germany, falling 20 percent, 16 percent and 3.1 percent respectively. Wind production jumped 348 percent in Portugal and 25 percent in Spain, helping contain the rise in electricity prices in those markets.

Britain's National Energy System Operator flagged potential supply tightness early on 9 November, forecasting a roughly 1.4 gigawatt supply shortfall.

Gas prices fall but power stays high

The power price surge came even as natural gas prices fell. Front-month TTF gas futures dropped to €85.59 per megawatt-hour on 6 November, down 18 percent from the previous Friday, while Brent crude ended the week at $98.32 a barrel, down 16 percent over the same period.

On a weekly average basis, Italy remained the most expensive market at €271.46 per megawatt-hour, while Germany averaged €256.59 and Spain €218.07. December power contracts for Germany and France trade near €200 per megawatt-hour, more than double year-ago levels.

Market watchers say the episode shows how quickly a cold, calm spell can tighten Europe's power balance when renewable output drops away, and warn that a greater frequency of such events raises the risk of recurring price spikes through the winter.