EU gas and electricity markets in the fourth quarter of 2024 proved their resilience further by ensuring stable and secure energy supplies, strengthening market integration and continuing the increase in the share of renewables, while keeping prices in check, according to the new quarterly reports for both markets published today. Looking at the markets from October to December, and thereby completing the picture for the whole of 2024, the electricity report confirms a record year for renewables – reaching 47% of the EU power mix last year, having seen a 93 TWh increase in renewable generation. For gas, the quarterly figures reflect the cold weather, which led to an increase in demand – with consumption 8% higher than the same quarter of 2023 and imports up 9%. Nevertheless, overall demand in 2024 remained 20% lower than 2021 levels.
The gas market report illustrates the stabilisation of the structural changes that transformed the EU gas market post 2022, when it severed its dependence on Russian pipeline gas. In the October-December period, the decline in EU gas consumption halted and there was an 8% quarterly increase year-on-year, the first such increase since the second quarter of 2021. EU domestic gas production also increased by 7% quarter-on-quarter and by 1% year-on-year. Total gas imports increased by 9% together with its components: pipeline gas imports were up 2% and liquified natural gas (LNG) imports up 24%. Higher imports in part reflected the seasonally higher demand during the winter months, and in part represented a rebound after a continuous steep drop in gas imports during the previous quarters. Year-on-year, gas imports declined by 6%. Within the overall imports, LNG imports declined more, by 13%, while pipeline imports remained relatively stable (-1%). Prices in the quarter continued their rising trend they started in the previous quarter. The average wholesale gas price rose by 21% quarter-on-quarter to 43 €/MWh but was unchanged compared to the same quarter in 2023. The gas retail price increased by 2% quarter-on-quarter to 106 €/MWh, but was 3% lower year-on-year.
From an annual perspective, most indicators show a contracting trend except for the EU’s total gas consumption that stopped falling and was practically unchanged in 2024 compared to 2023 (+2 bcm, 332 bcm). Compared to 2023, domestic gas production dropped by 15%, total gas imports declined by 6%, LNG imports were 16% down and pipeline imports contracted by 2%. Compared to 2022, the contraction in production (-32%), total gas imports (-18%), LNG imports (-14%), pipeline imports (-21%) were even more pronounced in many indicators. By contrast, the average wholesale price (35 €/MWh) also declined by 16% compared to 2023 and by 26% compared to 2022. The average retail price (104 €/MWh) was 8% lower compared to 2023, but still 81% higher than in 2021, the last year before the Russian invasion of Ukraine.
Norway remained the EU’s biggest pipeline gas supplier with a 50% share, while the U.S. kept its number one position as the EU’s most important LNG supplier with a 45% share in 2024. Globally, the EU remained the world’s largest LNG importer with a 20% share, followed by China (19%) and Japan (16%).
The electricity market report outlines the continued advancement in renewable power generation, with record shares (47%) in the power mix. The year 2024 was marked by a significant growth of renewable generation (+93 TWh), which combined with recuperated nuclear and high hydropower generation, lower gas prices, particularly in the first half of the year, and moderated demand, supported lower average wholesale electricity prices since 2021.
In April 2024, the share of the electricity generated through Renewable Energy Sources (RES) reached a historical high-record level of 54%, supported mainly by a growth in solar generation and hydro-generation. Solar generation hit a new high in 2024 rising by 19% (+38 TWh), while hydropower plants improved their output by 13% (+43 TWh). Additional installed capacities (+59 GW) supported higher levels of renewables generation in 2024.
This is markedly different from yearly fossil generation, which dropped by 10% in 2024. In total, coal-fired generation fell by 27% (-54 TWh), whereas less CO2-intensive gas generation dropped by 25% (-30 TWh).
Wholesale and retail electricity prices continued to be lower than at the same stage in 2023. The European Power Benchmark averaged 74 €/MWh in 2024, 22% lower year-on-year, while retail electricity prices for households in EU capital cities were down by 7% year-on-year (242 €/MWh).
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Details
- Publication date
- 31 March 2025
- Author
- Directorate-General for Energy