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 persist.
Eurelectric report outlines technologies to ease renewable grid integration
To stabilise the market, Europe must accelerate electrification and invest in grids, storage, and flexibility to build a reliable energy system that delivers affordable electricity for all consumers.
The EU power sector continued its decarbonisation trajectory in 2024, with renewables and nuclear jointly accounting for 72 percent of electricity generation. Higher shares of clean energy sources reduced EU average wholesale prices to €82/MWh in 2024, down from a peak of €227/MWh in 2022. However, disparities remain within the internal market, as regions still dependent on fossil fuels face higher prices.
While some regions – particularly in south-eastern Europe – faced persistent price spikes, average prices exceeded €150/MWh only 6.9 percent of the time in 2024, compared to 69 percent in 2022. Meanwhile, prices turned negative an average of 3.6 percent of the time, highlighting that periods of oversupply remain a challenge.
Investment 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,” says Kristian Ruby, Secretary General of Eurelectric.
Eurelectric report links electrification to industrial recovery
Electricity demand grew by just one percent in 2024 – remaining seven percent below 2021 levels – indicating that the EU is still recovering from the energy crisis. Incentivising electrification will be essential to achieving the 32 percent target by 2030 outlined in the Clean Industrial Deal.
To this end, Ruby calls on policymakers to accelerate electrification across all sectors – transport, heating, and industry – while establishing effective investment signals for grid and flexibility solutions to balance the system. (hcn)
