Electricity weathered energy shocks in 2026, but storage and flexibility must catch up

BRUSSELS, Sept. 30, 2026 /PRNewswire/ -- Amidst geopolitical tensions and extreme weather, Europe's electricity system proved it can shield consumers and industry from fossil fuel volatility, shows Eurelectric's Power Barometer 2026. EU electricity prices rose by 22.8% between February and August 2026, while gas prices surged by 88.4%. The report shows how clean power generation cushioned the impact, while highlighting the need for storage, grids and flexibility to strengthen Europe's resilience.

Following the blockade of the Strait of Hormuz, gas prices rose 41% between February and May, while EU electricity prices actually fell 7%. A record-hot summer then pushed power prices higher as gas reached new highs, Nordic hydropower weakened and nuclear availability fell due to high river temperatures, low water levels and planned maintenance. Yet, over the full period, electricity proved significantly more resistant to the fossil fuel shock.

"2026 has seen severe disruption of global energy markets, once again exposing the risks of reliance on imported fossil fuels. Amidst the turmoil, we're seeing real proof that Europe's bet on clean electricity is paying off" said Kristian Ruby, Secretary General, Eurelectric.

The report finds that 72% of EU electricity generation was clean in 2026, limiting the impact of fossil fuels on power prices. However, fully harnessing the benefits of homegrown electricity requires faster deployment of storage and flexibility solutions.

Bulgaria illustrates the impact of storage: after developing 5.4 GW of battery capacity, its wholesale power prices moved from 21% above the EU average in 2024 to just 8.3% above in 2026, thanks to reduced reliance on expensive fossil fuels during peak demand periods. Yet, Europe is lagging behind: utility-scale storage stood at 64 GW in 2025. Even with 78 GW of planned additions, it remains far below the EU's 200 GW target for 2030.

To strengthen Europe's energy security and competitiveness, Eurelectric calls for accelerated permitting of grids, storage and clean power, stronger incentives for flexibility, and a stable investment framework that preserves efficient market signals supporting electrification.

The report also provides key data trends on electrification, demand, emissions and more. Read it here.

Note to Editors:

Eurelectric represents the common interests of the European electricity industry. Speaking for more than 3,500 electricity companies, we promote the role of electricity in the advancement of society.

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