Nonetheless, significant disparities persist within the domestic market, with regions still heavily dependent on fossil fuels experiencing notably higher electricity prices. This finding is detailed in the Power Barometer 2025 report published by Eurelectric, the association representing the European electricity sector headquartered in Brussels.
To achieve market stabilization, Eurelectric emphasizes the urgent need for Europe to accelerate electrification efforts and increase investments in power grids, energy storage, and flexibility mechanisms. These measures are essential to establishing a reliable energy system that provides affordable electricity to all consumers.
The report highlights that in 2024, the European Union’s power generation sector maintained its trajectory towards decarbonization, with renewable energy sources and nuclear power accounting for 72% of total electricity production.
Key observations from the report include:
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Despite an overall decline in prices, regional price spikes and market volatility remain persistent challenges. For example, in Southeastern Europe—one of the regions most affected by sustained price increases—electricity prices exceeded an average of €150/MWh only 6.9% of the time in 2024, a significant improvement compared to 69% in 2022.
Kristian Ruby, Secretary General of Eurelectric, noted: “Addressing market volatility requires targeted investments in grid infrastructure, energy storage, and flexibility solutions. At the same time, subdued demand continues to hinder the maintenance of sustainable and stable investments.”
Electricity demand increased marginally by 1% in 2024 but remains approximately 7% below 2021 levels, indicating that the EU has yet to fully recover from the impacts of the energy crisis. Incentivizing electrification will be pivotal in meeting the EU’s target of 32% renewable energy penetration by 2030, as set forth in the Clean Industry Agreement.
It is also noteworthy that Mr. Giorgos Stassis, Chairman and CEO of the Public Power Corporation (PPC) Group, was recently re-elected for a second term as Vice-Chairman of Eurelectric’s Board of Directors.
