EU electricity market returned to a much more stable and predictable situation in the second quarter of 2024 relative to the same period in 2023, according to the new Quarterly Reports for electricity as well as gas markets published by the European Commission on 24 October. The reports highlight the acceleration of a number of positive structural changes with the most notable progress being the record level of renewables (52%) in the generation of electricity.
The latest Electricity Market Report showcases positive developments in electricity markets, with falling prices and an increasing share of renewables in the electricity mix. A significant milestone was reached as renewables, primarily solar and wind energy, accounted for over half of the electricity generation, hitting a record 52%. This growth in renewable energy has contributed to the reduction in the use of fossil fuels for electricity production, which reached a new low of 20% in terms of electricity generating share. Electricity generated from gas, for example, was 24% lower than at the same time last year (and coal-fored generation down 26%). Overall, electricity consumption rose only slightly (+1%) in Q2 2024 compared with Q2 2023.
Both wholesale and retail electricity prices continued on a declining trend as in the first quarter of 2024. The European Power Benchmark averaged 60 €/MWh in Q2 2024 – which is 33% lower than in the second quarter of 2023.
Source: European Commission
