Key developments in European electricity and gas markets 2025 Monitoring Report has been prepared by The European Union Agency for the Cooperation of Energy Regulators.
The key highlights include:
Europe’s energy landscape is at a crossroads. Renewable energy saw significant growth, accounting for 34% of power generation in 2024. Early 2024 marked some of the lowest energy prices since 2021, thanks to a strong renewable supply and nuclear recovery in France. Inflexible generation kept EU summer electricity prices low, causing more negative price events, increasing by 50% in 2024.
Europe’s energy transition faces persistent vulnerabilities. Europe continues to rely heavily on imported gas, exposing it to global market conditions e.g. rising gas prices in 2024.
Europe’s energy transition faces significant challenges in managing price volatility and energy system costs. Fossil fuels, particularly gas and coal, remain essential for peak demand flexibility. Market prices are volatile, driven by gas price fluctuations and renewables’ variability. The need for electricity market integration is growing faster than the actual progress being made, thus failing to bridge a gap that undermines market efficiency and stability.
Rising grid modernisation costs add pressure, demanding efficient and coordinated investments to maintain security of supply without increasing energy bills.
Access the report here
