Solar photovoltaic production reached all-time highs in May 2025 across four major European electricity markets: , Italy, , and Portugal. This surge in renewable generation played a key role in pushing electricity prices to their lowest levels since at least November 2024, according to data from AleaSoft Energy Forecasting. 23243p

The decline in prices was ed by a combination of factors: lower electricity demand, decreased CO2 prices, and stable natural gas costs. In this favorable context, solar energy solidified its role as a major driver of Europe’s energy transition, significantly contributing to the drop in power prices.

Spain recorded the lowest monthly average electricity price in Europe, with most major European power markets ing prices below €70/MWh. In , the EPEX SPOT market saw its lowest monthly price since June 2020. Other markets—such as Italy’s IPEX, Portugal and Spain’s MIBEL, the Netherlands’ EPEX SPOT, , Belgium, the UK’s N2EX, and the Nord Pool market—also experienced their lowest monthly prices in at least a year.

Source: AleaSoft Energy Forecasting with data of OMIE, EPEX SPOT, Nord Pool and GME.

In addition to record-breaking solar output, wind power production increased year-over-year in several key markets, though it declined compared to April. Electricity demand dropped across most major European markets, both compared to the previous month and to May 2024.

On the commodities front, the TTF natural gas futures average for the Front-Month stood at €35.30/MWh, nearly unchanged from April. CO? emission allowance futures rose slightly, while Brent crude oil futures reached their lowest monthly average since March 2021.

These results underscore the positive impact of renewable energy on the European power system, enhancing both economic competitiveness and energy sustainability. In particular, solar PV continues to prove its crucial role in reducing electricity costs and ing a resilient, decarbonized energy future for Europe.