Europe must boost electricity demand and invest in storage and flexibility to secure the benefits of the energy transition, according to Eurelectric’s Power Barometer 2025.
The industry group said that while EU power sector decarbonisation continued in 2024, sluggish demand growth and ongoing grid constraints are holding back progress.
Electricity demand grew by just 1% last year and remains 7% below 2021 levels. Eurelectric warned this slow recovery threatens the bloc’s 32% electrification target for 2030.
Average wholesale power prices dropped to €82/MWh in 2024, down from a peak of €227/MWh in 2022, as renewables and nuclear made up 72% of generation. But regional disparities remain, with fossil fuel-reliant areas still facing higher prices and volatility.
“Periods of oversupply and price spikes persist. To address market volatility, we need to invest in grids, storage and flexibility. At the same time, sluggish demand remains a barrier to sustained investments,” said secretary general Kristian Ruby (pictured).
Eurelectric called on policymakers to accelerate electrification across transport, heating and industry, while creating clear investment signals for grid upgrades and flexibility solutions.