Electricity prices in Europe fell significantly in April

Blackouts in Spain and Portugal at the end of the month highlighted the problems of the EU energy grid

In the EU, average monthly wholesale day-ahead prices fell significantly in April 2025. According to Ember, they amounted to:

• Italy – €101.01/MWh (-16% m/m)
• France – €42.21/MWh (-45%)
• Germany – €78.51/MWh (-15%)
• Spain – €27.44/MWh (-48%)
• Sweden – €33.46/MWh (-18.4%)

In Poland last month, the average price was €81.7/MWh, in Slovakia – €85.15/MWh, in Hungary – €86.35/MWh.

Last month’s weekly prices fluctuated based on renewable energy generation. Most markets saw reduced demand. According to AleaSoft, during the first half of the month, most European electricity prices stayed below €75/MWh, driven by record solar generation, with Germany, France, and Italy setting production records.

In the third week of April, many European markets (except Italy, UK, Nordics) experienced zero or negative prices, especially on weekends. Portugal set a new low of €4.99/MWh on April 20. Several countries also saw negative hourly prices during the final week.

Natural Gas Impact

Electricity market trends were influenced by falling gas prices. Dutch TTF gas futures started at €42.65/MWh and fell to €32.30/MWh by April 30. Reasons included a stronger euro, U.S. tariffs causing reduced LNG demand in China (expected 20% y/y drop), and Germany easing gas storage thresholds.

European Blackout

On April 28, a major outage hit Spain and Portugal, affecting infrastructure and causing economic losses. Andorra and parts of France had short-term effects.

Power restoration started evening of April 28 and completed by next morning. Red Eléctrica ruled out cyberattack; investigation continues. ENTSO-E formed an expert group to report within 6 months, with interim updates. Spain and Portugal must provide data within 3 months.

Experts cited issues in Spain’s grid amid renewable growth. The balancing capacity is reduced as coal, gas, and nuclear plants close. Leaders emphasized that renewables weren’t the cause.

AleaSoft noted that during Easter, only 2 of 7 nuclear reactors were active. Spain managed to export electricity due to high renewables and low demand. All reactors are to be decommissioned by 2035.

Ukraine’s Situation

Ukraine’s day-ahead price fell 15.7% to 4611.22 UAH/MWh (€99.3/MWh). Demand dropped 10.08%, supply fell 0.83%. Imports decreased 30% to 187k MWh, mainly from Hungary (44%), Slovakia and Poland (18% each). Peak import: April 11 (20k+ MWh).

Exports nearly doubled to 150k+ MWh, led by Hungary (38%) and Moldova (35%). As of May 1, export capacity to the EU rose to 650 MW. Ukraine trades with all neighbors: Slovakia, Romania, Hungary, Poland, Moldova.

Energoatom was performing scheduled repairs on 3 of 9 nuclear units by end-April.

Gas Storage Levels

As of May 1, 2025, EU gas storage was 39.9% full (vs. 62.7% in 2024). Bloomberg reported France injected the most gas in April, due to low winter reserves. France’s injection was double Germany’s and 70% of Italy’s. France auctioned off all 2025 storage capacity.

Germany lowered its legal gas storage target from 90% to 80% by Nov 1. Cavernous facilities must be 80% full, porous ones 45% (except near Swiss-Austrian border).

Equinor‘s CEO said Europe will need 200–300 more LNG cargoes this season. On May 5, the EU proposed the REPowerEU Roadmap to ban Russian gas and oil imports. Legal proposals to ban long-term LNG contracts with Russia are expected by June, effective end-2027.

Also, a ban on spot market Russian gas purchases and new contracts is expected by end-2025. The 2024 total Russian gas imports were 52 bcm (32 bcm pipeline, 20 bcm LNG).

Ending Russian supply depends on alternative LNG from the U.S., Qatar, Canada, Africa. U.S. supply talks are ongoing via trade negotiations.