In 2024, a higher share of clean and renewable sources in the electricity mix, combined with stagnant demand, reduced average prices to €82/MWh from €227/MWh in 2022, according to Eurelectric’s Power Barometer 2025. Despite this decline, regional price spikes and market volatility continue.
To stabilise the market, Europe needs to accelerate electrification and invest in grids, storage and flexibility to create a reliable energy system that delivers affordable electricity for all consumers.
Eurelectric report outlines technologies to ease renewable grid integration
The EU power sector continued its decarbonisation path in 2024, with renewables and nuclear together accounting for 72 percent of electricity generation. Higher shares of clean and renewable sources drove down EU average wholesale prices to €82/MWh in 2024, compared to a peak of €227/MWh in 2022. However, disparities persist across the internal market, with regions still reliant on fossil fuels facing higher prices.
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While some regions – particularly in south-eastern Europe – struggled with persistent price spikes, prices on average exceeded €150/MWh only 6.9 percent of the time in 2024, compared to 69 percent in 2022. At the same time, prices turned negative an average of 3.6 percent of the time, underlining that periods of oversupply remain a challenge.
Investments in grids, storage and flexibility
“To address market volatility, we need to invest in grids, storage and flexibility. At the same time, sluggish demand remains a barrier to sustained investments,” said Kristian Ruby, Secretary General of Eurelectric.
Eurelectric report links electrification to industrial recovery
Electricity demand grew by just one percent in 2024 – still seven percent lower than 2021 levels – showing that the EU is still recovering from the energy crisis. Incentivising electrification will be key to reaching the 32 percent target by 2030 set out in the Clean Industrial Deal.
To this end, Ruby calls on policymakers to accelerate electrification across all sectors – transport, heating and industry – while also setting effective investment signals for grid and flexibility solutions to balance the system. (hcn)
