The shift towards clean and renewable energy helped drive average wholesale electricity prices down to €82/MWh in the EU last year, compared with a peak of €227/MWh in 2022, new data from Eurelectric has found.
According to the industry group’s Power Barometer 2025, the EU power sector continued to accelerate its decarbonisation efforts last year, with renewables and nuclear together accounting for close to three quarters (72%) of electricity generation.
While this has led to a reduction in average wholesale prices, price volatility persists in the market, with regions still reliant on fossil fuels registering higher prices.
Some regions, such as south-Eastern Europe, continued to experience price spikes during 2024, however on average, prices exceeded €150/MWh just 6.9% of the time, compared to 69% in 2022. Prices also turned negative 3.6% of the time, highlighting the need for infrastructure that can absorb and balance fluctuating generation levels.
Market volatility
“To address market volatility, we need to invest in grids, storage and flexibility,” commented Kristian Ruby, secretary general of Eurelectric. “At the same time, sluggish demand remains a barrier to sustained investments.”
Overall electricity demand across the EU rose by 1% last year, and remains 7% below 2021 levels, an indication of the slow recovery the bloc is facing following the recent energy crisis.
Investment in electrification
As Eurelectric, which represents the interests of the European electricity sector, noted incentivising action around electrification will be needed to ensure that the EU’s target of 32% electrification by 2030, under the Clean Industrial Deal, can be achieved.
‘To this end, Eurelectric calls on policymakers to accelerate electrification across all sectors – transport, heating, and industry, alongside setting effective investments signals for grid and flexibility solutions to balance the system,’ it noted. Read more here.
Read more: Clean Industrial Deal ‘a step in the right direction’
