European electricity market summary Q1 2026
Understand the key drivers behind power prices, demand and generation across Europe from January to March 2026.
What shaped the market in Q1 2026
Five developments defined the quarter.
Gas prices hit a three-year high
Gas prices reached their highest levels since January 2023 after disruption to LNG flows through the Strait of Hormuz.
Cold weather lifted electricity demand
January temperatures were 1 to 4°C below average in parts of Europe, pushing quarterly demand to 829.3 TWh, the highest level since 2022.
Renewables reached a record high
Renewable generation totalled 384.9 TWh in Q1, the highest quarterly level on record.
Negative prices accelerated
Spain recorded 397 hours of negative prices in Q1, compared with 48 hours in the same period of 2025.
Offshore wind ambitions grew
Ten countries signed a North Sea pact targeting an additional 100 GW of offshore wind capacity.
Q1 2026 at a glance
The numbers behind the quarter.
Stats
Total demand: 829.3 TWh
Renewables: 384.9 TWh
Fossil fuels: 230.2 TWh
Nuclear: 174.3 TWh
Renewable share of generation: 48.8%
Total generation: 789.4 TWh
Clean power continued to grow
Wind, hydro and solar all played a stronger role.
Wind generation rose 22% year on year to 173.7 TWh. Hydro output recovered to 128.6 TWh after weaker rainfall in 2025. Solar reached a new Q1 record of 52.6 TWh, up 15% year on year and 128% above 2019 levels.
Why prices stayed volatile
Global events and weather kept markets under pressure. Higher gas prices increased price pressure across European markets. At the same time, stronger solar output created more daytime oversupply, leading to rising negative prices in several countries. This combination highlights a market balancing expensive peak power with low-value surplus generation.
What comes next
The report expects another complex quarter.
More negative price records likely
Longer daylight hours and growing solar capacity are expected to push negative prices higher.
Elevated gas prices may continue
Even with easing tensions, prices are expected to remain above pre-conflict levels.
Strong solar generation ahead
Summer conditions could deliver new solar output records.
Evening peak prices may stay high
As solar output falls later in the day, gas-fired generation may continue to set higher peak prices.
Get the full market view
Go deeper with detailed charts, quarterly comparisons and forward-looking analysis.
Country-level pricing trends
Negative price comparisons across Europe
Fuel mix and generation tables
Gas market context
Q2 2026 market outlook