Day-ahead market

Energy on the day-ahead market stood at 291 TWh in 2025 (185 TWh on the spot market without bilaterals), an increase of 6.5% compared to 2024. 63.6% of the energy was traded on the spot market and the remaining 36.4% via bilaterals, so the spot market got a slightly lower share than in previous years. 

Percentage of energy purchased in the day-ahead market and through bilateral contracts

The average day-ahead electricity market price in 2025 stood at €65.29/MWh, representing a 3.6% increase compared with the previous year and marking the fourth-highest level on record, after 2022 (€167.52/MWh), 2021 (€111.93/MWh), and 2023 (€87.10/MWh). The increase was driven by a lower share of renewable generation and a slight rise in the annual average gas price.

In 2025, prices started the year at higher levels than in 2024 before the trend shifted, except in June and October. Despite a higher starting point at the beginning of the year, the upward trend was less pronounced than in 2024. Prices rose during the first two months, then fell sharply until May. In June, they increased again and then gradually declined until September. In October, prices rose once more, before dropping in November and rising again in December to levels similar to those seen in October. The price recorded in May (€16.93/MWh) was the second-lowest on record, after April 2024 (€13.67/MWh).

The highest monthly prices were recorded in February (€108.31/MWh) and January (€96.69/MWh), while the lowest occurred in May (€16.93/MWh) and April (€26.81/MWh), months with a very low share of coal-based generation and combined-cycle plants.

Evolution of prices in the day-ahead market

The highest daily price for the year was recorded on 20 January at €144.92/MWh, while the lowest price of the year was recorded on 19 April at €1.72/MWh. The lowest hourly prices in history were recorded on 11, 18, and 25 May at -€15/MWh.

When considering hourly average values, 2025 recorded 798 hours with prices equal to or below €0/MWh, compared with 784 hours in 2024, and nearly 70% of those hours were negative, versus 32% the previous year.  Based on quarter-hourly values in the last quarter (expressed in equivalent hours or 0.25 hours per quarter-hour), there were almost 805 hours with prices equal to or below €0/MWh, of which 502 were negative. In May, 269 hours with zero or negative prices were recorded, marking a new monthly historic high after surpassing the 263 hours registered in April 2024. This month also saw the highest number of hours with negative prices: 239 hours, compared to 107 negative hours in April 2024.

The highest monthly prices were recorded in February (€108.31/MWh) and January (€96.69/MWh), while the lowest occurred in May (€16.93/MWh) and April (€26.81/MWh), months with a very low share of coal-based generation and combined-cycle plants.

Taking into account the generation mix in the day-ahead market, an important factor in price formation, it becomes evident that a higher share of renewables in the clearing structure leads to a lower price, whereas a lower share increases the wholesale price.

The year began with very high prices in January and February, when the combined wind power and solar energy share was among the lowest of the year (54% in February, the annual minimum), increasing the likelihood that more expensive technologies would set the marginal price. This was followed by a sharp price drop in spring (March and April), while the annual low was reached in May. A price-depressing combination is clearly observed during these months: combined-cycle generation was almost absent (0.2% in March; 0.1% in April; 0.1% in May), while wind power and solar energy maintained shares of around 60% or higher (62.2% in March).  In the second half of the year, market prices remained relatively stable but rose again in October, driven by an increase in combined-cycle generation that marked its annual peak, together with a lower share of wind power and solar energy. This explains the upward pressure on prices. 

Generation structure in the day-ahead market clearing process, price of the day-ahead market, and price of natural gas

The share of renewable energies in the generation mix for market clearing stood at around 73%, slightly below (by about one percentage point) the level recorded the previous year. Despite this slight decline, renewables continue to be the main structural factor containing prices.

Nuclear generation significantly increased its share in market clearing, as a larger portion of electricity generated through this technology was traded on the market rather than through bilateral contracts, as in previous years. At the same time, combined-cycle generation decreased by just over 11%, while coal-based generation fell by around 54%, reinforcing the ongoing decarbonisation of the generation mix.
As for renewables, wind power generation declined slightly, with a 3% drop, whereas solar generation saw strong growth of 21.6% overall, including a 17% increase in photovoltaic generation. This growth had a particularly significant impact during the central hours of the day, contributing to low or even zero prices in certain periods.

Another factor influencing the price is reserves. This year, hydroelectric reserves recorded a slightly lower value than the previous year (1.18 compared to 1.25 the year before). March recorded the highest producible hydroelectric power, followed by April and May. The latter months also saw the lowest prices. Reservoir levels remained similar to those of the previous year (52.5% compared with 52.3% in 2024) and, as in 2024, were above the historical average in every month, even reaching record highs between April and June, and coming very close to those levels in the adjacent months (March and September). As a result, their impact on prices was similar to that observed last year.

The price of fuels is another influencing factor. Gas prices started 2025 at a high level following the spikes recorded at the beginning of the year, and reached peak levels in January and February. From that point onwards, prices entered a correction phase, with a marked decline in March and April, until they reached their lowest levels of the year around May. Thereafter, throughout spring and summer, gas prices remained within a relatively stable range, with occasional spikes (particularly in June) and moderate declines, without a clear trend. In the final part of the year, prices continued to show contained behaviour, with a slight weakening in November, followed by a more pronounced increase at the end of December and the beginning of 2026, coinciding with the start of the winter period. This evolution was shaped by a context of persistent geopolitical uncertainty, particularly in the Middle East, which increased the risk premium on European gas, as well as by the relatively tighter level of European reserves at the end of summer, which made the market more sensitive to periods of higher demand. On an annual average basis, the price of European gas in 2025 stood slightly above 2024 levels, while MIBGAS also recorded a modest year-on-year increase, with both remaining well below the levels observed during the energy crisis. Brent crude prices closed the year at an average of around $69 per barrel, down from just over $80 per barrel in 2024, representing a significant year-on-year decrease. Geopolitical uncertainty, OPEC+ production decisions, the slowdown in global economic growth (partially offset by strong demand in China) as well as uncertainty surrounding US monetary policy, helped shape a context of high volatility throughout the year. Against this backdrop, prices fluctuated between around $79 per barrel at the beginning of the year and lows of approximately $62–63 per barrel in December, reflecting a market characterised by global oversupply despite episodes of geopolitical tension.

As for CO₂ emissions prices, they were lower than in the previous year and recorded a significant year-on-year decline. Throughout 2025, prices showed a downward trend in the first months of the year and reached their lowest levels in spring, before reversing course in the second half of the year, with a gradual increase towards year-end. In this context, prices ranged from around €64/tCO₂ in April, the annual low, to approximately €83/tCO₂ in December, reflecting high volatility and a clear trend reversal in the second half of the year.

Plotting the structures of the generation cleared in the hours in which the day-ahead market price marked the annual minimum and maximum, it can be seen that they are very different. In the hours of minimum price, solar photovoltaic energy accounts for almost 50% of the generation structure, with renewables accounting for almost 80% while combined-cycle plants are completely absent. If we observe the mix in the hours of maximum price, it can be seen that the combined cycle has the highest share in the generation structure (36.5%). During those hours, renewable energy generation accounted for slightly less than 33% of the generation structure.

Generation structure in the minimum and maximum price hours of the day-ahead market

European electricity prices were slightly higher than in the previous year. Spain recorded the third-lowest electricity prices in Europe in 2025, behind Nord Pool and France. The country registered the lowest prices in April, May, and November.

With the exception of Nord Pool, most markets recorded the highest daily prices of the year in January (Spain recorded €144.92/MWh, France €196.71/MWh, the Netherlands €224.79/MWh, Germany €231.36/MWh, and Italy €192.84/MWh, all on 20 January; while the United Kingdom recorded €309.01/MWh on 22 January).

The lowest prices were recorded in different months across markets: Spain (€1.72/MWh on 19 April); France (-€5.84/MWh on 11 May); the Netherlands (-€1.11/MWh), Germany (-€0.29/MWh), and the United Kingdom (€0.48/MWh) on 4 October; Nord Pool (€0.79/MWh on 29 June); and Italy (€47.74/MWh on 25 May).

European market prices