European electricity markets recorded a stronger price environment in the first half of 2026, with average six-month prices exceeding €60/MWh in most major markets. Italy registered the highest average price at €127.18/MWh, followed by the United Kingdom at €107.27/MWh. In contrast, Portugal and Spain remained the lowest-priced markets, with averages of €48.77/MWh and €49.83/MWh, respectively.
Compared with the second half of 2025, electricity prices increased across most analysed European markets. The Nordic market experienced the strongest growth, with prices rising by 82%, while the United Kingdom recorded a 27% increase. Southern European markets moved in the opposite direction, with Spain and Portugal registering declines of 28% and 29%, supported by stronger renewable generation and improved supply conditions.
On a year-on-year basis, most markets also recorded higher electricity prices, with the Nordic region again showing the largest increase at 120%. The price development reflected a combination of higher demand, changing generation patterns, fuel market conditions and regional differences in renewable output.
Solar photovoltaic generation continued its rapid expansion across Europe, increasing year-on-year in all major electricity markets analysed. Spain and France recorded the largest growth, both at 16%, while Germany, Spain, Italy and France achieved new half-year records for solar power production. The continued expansion of photovoltaic capacity is strengthening daytime electricity supply but also increasing the need for flexibility solutions as renewable penetration rises.
Wind generation also improved across all analysed markets compared with the first half of 2025. Italy recorded the largest increase at 17%, followed by France and Germany. France, Italy and Portugal reached record half-year wind production levels, highlighting the growing contribution of renewable resources to Europe’s electricity mix.
Electricity demand increased year-on-year in most European markets, with Belgium recording the largest rise at 6.1%. Compared with the previous six-month period, consumption also increased in most countries, although Spain recorded a decline. The demand recovery added additional pressure on power systems already adapting to higher renewable integration.
Energy commodity markets also remained influential. TTF front-month gas futures on the ICE market averaged €42.94/MWh during the first half of 2026, marking the highest six-month average since the second half of 2023. Lower European gas storage levels and geopolitical tensions, particularly developments involving the United States and Iran, contributed to stronger gas market conditions.
Brent crude oil futures for the front month on ICE averaged $87.60 per barrel, reaching their highest level since the first half of 2023. The increase reflected supply concerns, geopolitical uncertainty and broader energy market volatility.
Meanwhile, EU carbon allowance futures for December 2026 on the EEX market averaged €77.13/t. This represented a 2.4% decline compared with the previous six-month period, but remained 3.4% above the first half of 2025, indicating continued long-term pressure from Europe’s decarbonisation policies and emissions market structure, AleaSoft reports.
