Reports European Electricity Market Summary 2025

European Electricity Market Summary 2025

How is Europe's energy system adapting to volatility, price signals and renewables buildout?

Montel’s latest annual summary provides a detailed look at the structural, policy and climate-driven forces shaping Europe’s power markets. From a record number of negative prices across the continent to a slowdown in decarbonisation and critical infrastructure challenges, this report captures the key shifts of 2025 and what to watch in 2026.

Key insights include

Negative prices surge: over 500 hours of negative day-ahead prices recorded in countries like Germany, France, Spain and the Netherlands, driven by solar and wind oversupply and limited flexible demand.
Renewable growth stalls: clean power share dropped to 73%, with hydro and wind underperforming due to weather and project delays. A new record for solar was the only bright spot.
Demand keeps falling: despite electrification forecasts, power demand in 2025 was lower than 2024, 2022 and 2021, partly due to behind-the-meter solar and industrial offshoring.
Q1 2026 outlook: volatility to continue with cold weather, negative prices, and geopolitical risks influencing gas and power prices.
System stress ahead: market integration is increasing, but so is strain from Dunkelflaute events to grid stability risks like the major Iberian blackout in 2025.

Whether you’re trading, investing or building policy, this report offers the data, context and clarity you need to stay ahead.