Power Markets in 2024: The Price Puzzle Across Europe
In 2024, European power markets were more fragmented than ever, with significant price disparities between countries. While some benefited from abundant renewable energy, others struggled with supply gaps during periods of low production.
- Article
- 05/03/2025
How did these dynamics shape electricity prices, and what does it mean for the future?
Price differences across Europe were stark, influenced by the energy mix of each country. Nations heavily reliant on gas-fired power plants, such as Germany, Belgium and the Netherlands, experienced higher price volatility, while France and Spain, with stronger nuclear and hydropower contributions, saw more stable pricing. These discrepancies highlighted the uneven progress of Europe’s energy transition.
The growing share of renewables played a decisive role in market fluctuations. Wind and solar energy drove prices down during peak production hours but created instability during “Dunkelflaute” periods, when low wind and solar output forced countries to rely on more expensive fossil fuel generation. This led to a record number of negative electricity price hours in markets like the Netherlands and Belgium.
Interconnections and grid flexibility remained key challenges in 2024. While electricity demand was relatively low, the lack of sufficient cross-border capacity prevented surplus renewable energy from reaching regions in need. Improving grid infrastructure and energy storage solutions will be critical to reducing price disparities and enhancing market stability.
Download the full eBookThe following graph highlights the disparities across European electricity markets in 2024. Countries with a high share of renewables saw more frequent negative price hours, while those dependent on gas-fired generation experienced more volatility. This fragmentation underscores the need for enhanced grid interconnections and energy storage solutions.
Understanding these shifts is essential for anticipating future trends in the European energy landscape.
