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Energy

Market analysis

The Commission produces quarterly reports on EU gas and electricity markets.

Gas and electricity market reports

Energy prices have a significant impact on household expenditures, industrial costs and business competitiveness. In a liberalised market, monitoring market prices has become increasingly important for analysts, policy makers and businesses alike.

The EU quarterly gas and electricity market reports analyse market data in detail to examine trends and challenges. The reports explore the main factors behind price and volume variations and the interaction between market actors.

The European Union is currently facing a sharp spike in energy prices. In response, the Commission adopted a Communication on “Tackling rising energy prices: a toolbox for action and support” to enact and support appropriate measures to mitigate the impact of the current energy price rises and help Europe's people and businesses, while further strengthening resilience against future shocks. The implementation of the measures proposed in the toolbox will impact price developments in the EU.

Every 2 years, a report on energy prices and costs in Europe is published, taking stock of the recent trends for gas, electricity and oil prices, as well as other energy costs.

Gas market - recent developments

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In the third quarter of 2022, after Russia’s Gazprom started to curb flows on Nord Stream 1, wholesale gas prices rose to historic highs by the end of August (above 300 €/MWh), while in September it fell back to lower levels as gas storages reached high levels compared to the previous year.

EU gas consumption in Q3 2022 fell by 8%, (-5.1 bcm) year-on-year, amounting to 59 bcm. Indigenous gas production in the EU amounted to 10.7 bcm in Q3 2022, down by 9% (1 bcm). At the same time, EU net gas imports rose by 2% year-on-year (by 1.4 bcm) in Q3 2022 and EU LNG imports were up by a staggering 89% in Q3 2022 year-on-year, amounting to 32 bcm. Russian gas imports fell measurably in the third quarter of 2022. Russian pipeline gas imports were down by 74% in Q3 2022 (though Belarus by 96%, via Nord Stream 1 by 85%, through Ukraine by 63%, only increasing via the Turk Stream, by 21%), year-on-year. In Q3 2022, Russian pipeline imports only covered 11% of the total extra-EU gas imports. The EU spent an estimated €101 billion (the highest in the last decade) on gas imports in Q3 2022, up from €29 billion in Q3 2021, principally owing to higher import prices.

Gas storage injections were more intensive in Q3 2022, than in the third quarter of 2021, and at the end of September the EU average the filling rate stood at 89%, 14 percentage points higher than on the same day in 2021. The end of September filling rate corresponded to around 40% of a typical winter consumption (October to March) in the EU on average. The 80% EU storage level, originally foreseen for 1 November in the gas storage regulation, as adopted by the Council in June 2022, has already been reached in the final days of August 2022.

EU quarterly gas market reports

Electricity market - recent developments

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The third quarter of 2022 was marked by further reductions and the following total cut in gas supply from the Nord Stream 1 pipeline in early September. The consequent high gas prices, combined with reduced availability of nuclear power plants and weak hydroelectric production due to droughts, exerted additional pressure on the already tight wholesale electricity market. The European Power Benchmark was 339 €/MWh on average in Q3 2022, 222% higher than in Q3 2021.

Prices rose considerably in almost every market in Europe (price changes ranged from 25% to more than 300%). The largest year-on-year price increases in EU countries were registered in France (+342%), Austria (312%), and Slovakia (+310%). Italy and Malta (472 and 460 €/MWh, respectively) 279% and 238% higher than in Q3 2021.

In Q3 2022, the share of renewables managed to increase its share to 49%. Renewable generation improved its output by 1% (+3 TWh) year-on-year. This was the result of an increase of 28% in solar generation (+16 TWh) and 7% of onshore wind (+4 TWh). Reduced output levels of nuclear (-41 TWh) and hydro generation (-17 TWh) allowed fossil fuel generation to increase by 11% (+24 TWh) year-on-year, despite high energy commodity prices.

New emergency intervention policy measures were introduced to tackle high electricity prices, including demand reduction measures and a temporary revenue cap on inframarginal electricity producers. Retail electricity prices for household costumers in EU capital cities were up by 49% in November 2022, compared with the same month in 2021. Highest increases in EU Member States prices were registered in Italy (+64%), Belgium (+59%) and Germany (+58%).

EU quarterly electricity market reports

Energy data centre

Consistent and accurate data is very important for a reliable analysis that can be used as the basis to develop energy policies or investment planning.

For data and analysis, the Directorate-General for Energy relies on the Market Observatory for Energy, which maintains and operates the Energy market observation system (EMOS), a database of information collected from a wide range of private and public entities.

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