Electricity prices in Europe fell significantly in April

Average monthly wholesale day-ahead electricity prices in Europe in April 2026 fell compared to March amid declining demand and significant, often record-breaking levels of solar generation.

April trends

According to Ember, as of May 4, they stood at:

• Italy – €120.1/MWh (-16.4% MoM);
• France – €39.5/MWh (-38.3%);
• Germany – €80.5/MWh (-18.9%);
• Spain – €42.6/MWh (-0.5%);
• Sweden – €49/MWh (-3.4%).

In Poland, the average monthly day-ahead wholesale price in April was €82.9/MWh, in Slovakia – €83.2/MWh, in Hungary – €96.4/MWh, and was lower compared to March.

April saw mixed trends. Fluctuations in electricity prices and differences between countries were largely driven by gas prices and the volume of renewable energy generation. Last month, some European markets recorded low and record-breaking negative prices.

For example, on April 26, according to Bloomberg, the hourly electricity price in Germany between 1:00 p.m. and 2:00 p.m. fell to -€413.7/MWh on the Epex Spot SE exchange. This was driven by increased solar generation and moderate weekend demand. In France, prices as low as -€412.55/MWh were recorded during the same time period. However, prices rose sharply by evening.

Similar negative prices were observed at 2:00 p.m. that day in Hungary (-€500/MWh), Slovakia (-€449/MWh), and the Czech Republic (-€489.28/MWh).

With the large-scale development of solar energy, Bloomberg notes, negative prices on the European electricity market have become an increasingly common phenomenon in recent years. The reason for this is insufficient storage capacity and grid bottlenecks, which prevent the system as a whole from being more flexible.

In particular, despite negative prices on April 26, Electricité de France—France’s state-owned electricity company—kept some nuclear reactors operational at the request of grid operator RTE to help maintain system stability.

According to Ember, global solar power generation grew by 636 TWh last year (+30% year-over-year), and has increased more than tenfold since 2015. In the EU in 2025, wind and solar power generated a record 30% of electricity, surpassing fossil fuels (29%).

European decisions

In late April, the European Commission adopted a temporary state aid framework to support sectors affected by the Middle East crisis (Middle East Crisis Temporary State Aid Framework, METSAF).

Specifically, METSAF allows member states to increase the level of support for electricity cost compensation programs approved under the Clean Industrial Deal state aid mechanism from 50% to 70% of consumption costs.

It also permits the partial accumulation of this support with compensation for indirect costs, as provided for in the EC’s recommendations on state aid under the ETS. At the same time, companies are not required to make additional decarbonization efforts.

Furthermore, the EC is prepared to assess (on a case-by-case basis and subject to several conditions) temporary measures, which may include subsidizing the cost of fuel for electricity generation using natural gas.

METSAF is scheduled to run until the end of this year; during its implementation, the EC will review the scheme’s content, scope, and duration, taking into account developments in the Middle East and the overall economic situation.

The German industry association WV Stahl welcomed the European Commission’s decision. According to Managing Director Kerstin Maria Rippel, the new crisis instrument creates the necessary leeway to reduce energy costs, which remain a key factor in the loss of competitiveness of the European steel industry. At the same time, the industry emphasizes that this is only a temporary solution, and that high electricity prices in the EU are structural in nature and require long-term changes.

The situation in Ukraine

According to «Market Operator,» the weighted average price of electricity trading on the Day-Ahead Market (DAM) in Ukraine fell by 21.6% month-over-month in April, to 5,791.6 UAH/MWh (€112.9/MWh at the average monthly hryvnia-to-euro exchange rate).

Demand on the day-ahead market in April decreased by 17.15% compared to the previous month, while supply fell by nearly 17%.

According to ExPro Electricity’s monitoring data, in April of this year, Ukraine reduced electricity imports by 40% compared to the previous month, down to 558,200 MWh. However, compared to the same period in 2025, the figure increased 2.8-fold.

As before, the largest volumes of imports for the period came from Hungary (55%). At the beginning of April, imports across the border with Slovakia were suspended—repairs to the inter-state line will continue until the end of May.

Electricity exports in April rose by 10% compared to the previous month—to 33,000 MWh; on an annual basis, the figure fell by 78%.

On April 23, the regulator—the National Commission for Energy and Public Utilities Regulation (NEURC)—revised the price caps for the day-ahead market (DAM), the intraday market (IDM), and the balancing market effective May 1. The relevant resolution stipulates that, starting this month, the maximum price caps on the DAM and IDM are 15,000 UAH/MWh regardless of the time of day, and 17,000 UAH/MWh for all hours on the balancing market.

As noted in the regulator’s statement, the revision of price caps is intended to create conditions for stable market operation amid a generation shortage, as well as to increase importers’ interest in supplying electricity to meet peak demand. The NEURC cited the global energy situation, particularly the impact of gas prices, as an additional factor contributing to the pressure.

Previously, on April 1, following the expiration of the elevated price caps (which had been in effect since January of this year), the price caps on the electricity market for businesses returned to a lower level. As experts noted, this led to a drop in electricity imports last month and affected the system’s balance.