EU energy outlook 2060

In the EU Energy Outlook 2060 (Q2 2026 update), you get a clear view of how power prices could evolve across Europe over the next 30+ years.

Why this report matters

You’re making decisions today that will shape your position for decades.

But long-term energy markets are complex. Prices depend on many moving parts, including:

• Commodity prices like gas and CO2

• The pace of renewable expansion

• Electrification and hydrogen demand

• Policy and geopolitical developments

This report brings it all together into one clear, structured view.

What you’ll learn

Three scenarios. Three possible futures.

We model three distinct pathways for European power prices:

• Central
  A steady transition driven by policy targets and growing renewables

• Tensions
  Higher prices driven by geopolitical pressure and slower energy transition

• GoHydrogen
  A rapid shift to hydrogen and electrification, with lower long-term prices

Each scenario shows how prices, demand, and generation could evolve to 2060.

How power prices could move

• Prices may rise again towards 2030 due to tight capacity and rising CO2 costs

• Long-term price levels vary widely by scenario

• In high-pressure scenarios, prices can reach around 110 EUR/MWh

• In more optimised systems, prices stabilise closer to 50–60 EUR/MWh

What drives the market

You’ll get insight into the key forces shaping the energy system:

• Rapid growth in wind and solar capacity

• Decline of coal and gradual shift away from gas

• Strong increase in electricity demand, driven by:

  • Hydrogen production

  • Heat pumps

  • Electric vehicles

• Rising importance of flexibility, especially battery storage

By 2060, electricity demand could increase by over 70%.

Where opportunities are emerging

The report also highlights where value is created:

• Battery storage benefits from increasing price volatility

• Renewables face pricing pressure from the “cannibalisation effect”

• Flexible demand becomes a key market driver

• Market differences across countries create trading and investment opportunities

Who this is for

This report is designed for you if you:

• Trade power or manage risk

• Develop or invest in energy assets

• Work with Power Purchase Agreements (PPAs)

• Need long-term price forecasts for strategy or planning

What makes this analysis different

Most models focus only on economics.

This one doesn’t.

Montel’s modelling reflects the real world, where policy decisions shape markets. It captures how governments, climate targets, and regulation influence investment and price formation.

Get the full report

Understand where the market is going. And plan with confidence.