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, policymakers 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.
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
In the first quarter of 2024, EU gas market fundamentals remained robust due to persistently high gas storage levels, stable pipeline gas and LNG supplies, and a significant decrease in wholesale and retail gas prices, combined with gas consumption stabilising at low levels in line with EU energy saving commitments and higher renewables’ shares.
Imports declined by 5% quarter-on-quarter and remained stable year-on-year (with a small decline of 1%).
The share of pipeline imports remained stable at 59%, complemented by LNG imports at 41%. Norway increased its share in EU pipeline gas supply to 54%, from 50% in the previous quarter, while the United States kept its 50% share in the EU’s LNG imports. The EU remained the largest LNG importer in the world ahead of China and Japan.
According to the gas market report, the EU’s gas consumption was 111 bcm, a decrease of 2% year-on-year and a 16% increase quarter-on-quarter, reflecting the usual higher winter demand.
EU domestic gas production remained stable, with 8 bcm quarterly production, almost the same as in the previous quarter, but declined by 26% compared to the last year. The Netherlands remained the largest producer accounting for one-third of EU production (2.7 bcm, 33%), followed by Romania (2.4 bcm, 29%) and Germany (1 bcm, 1%).
EU gas storage levels decreased by 29%, from 95% to 68%, as a quarterly average reflecting the winter season’s higher consumption withdrawals. On a year-on-year basis, the storage filling rate was 1 percentage point higher than in the same period of the previous year (67%), reflecting continued above average storage filling rates compared to historic levels.
EU gas imports amounted to 70 bcm, a 5% decrease quarter-on-quarter and 1% decrease year-on-year. Pipeline gas constituted 59% of imports (41 bcm) and LNG was 41% (29 bcm).
EU pipeline imports decreased by 5% compared to the previous quarter and remained stable compared to the previous year. Norway remained the EU’s biggest pipeline gas exporter with a share of 54%, followed by North-Africa (18%), Russia (17%) and Azerbaijan (7%).
The EU’s total gross LNG imports decreased by 5% quarter-on-quarter and by 6% year-on-year. Compared to 2021, the EU’s LNG imports were up 91%. France was the largest EU importer accounting for almost a quarter (22%) of total volumes, followed by Spain (18%) and the Netherlands (14%). The United States remained the biggest EU LNG supplier accounting for half of EU LNG imports, followed by Russia (20%) and Qatar (10%).
Russian gas represented 19% of the EU’s total gas imports, which is a 2 percentage point increase compared to the previous quarter and a 4 percentage point increase compared to the first quarter of the previous year. Compared to the first quarter of 2021 (pre-war level), the share of Russian gas recorded a 30 percentage point decrease (from 49%).
European wholesale gas prices averaged 27.3 EUR/MWh in the first quarter of 2024, a decrease of 33% compared to the previous quarter and 49% lower year-on-year. February 2024 registered the lowest wholesale price (25.7 €/MWh) since the energy crisis started, and comparable to the price level last seen in the second quarter of 2021.
Asian prices were 6% or 1.7 €/MWh higher than European prices as a quarterly average and remained higher throughout the quarter. The Henry Hub in the United States recorded an average price of 6.6 EUR/MWh with a difference of 20.8 €/MWh with Europe’s TTF, which signaled a narrowing gap compared to the previous quarter (33.1 €/MWh) and an even more significant reduction in the price difference from 44.2 €/MWh (quarterly average) experienced 1 year ago.
Retail gas prices fell in the first quarter of 2024, decreasing by 20% compared to the first quarter of 2023 and by 3% compared to the previous quarter, with an average price of 106 €/MWh.
EU quarterly gas market reports
The older reports (2008-2020) are available in a dedicated CIRCA BC
Electricity market - recent developments
The electricity market report also confirms the continued improvement in market fundamentals in the first quarter of 2024 that supported lower wholesale electricity prices after the crisis situation in 2022. The European Power Benchmark averaged at 67 €/MWh in Q1 2024 – 57% lower than in the first quarter of 2023. EU electricity consumption has not fully recovered yet, compared with pre-crisis levels. Overall, consumption rose only slightly (+1%) in Q1 2024, compared with Q1 2023.
The quarterly figures showed considerable progress in the clean energy transition with 46% of Q1 2024 electricity production generated by renewables, with fossil generation falling significantly to 25% (relative to 40% and 31% respectively in Q1 2023). Solar and wind registered an 11% rise in generation in Q1 2024 (+18 TWh). Onshore wind generation rose by 6% (+7 TWh) while offshore wind generation rose by 34% (+5 TWh). Solar generation surged by 20% (+6 TWh) and hydropower improved its output by 26% (+22 TWh). Additional installed capacity supported higher levels of renewables generation during the reference quarter.
Fossil fuel generation dropped by 25% in Q1 2024. Coal-fired generation fell by 34% (-17 TWh), whereas less CO2-intensive gas generation dropped by 8% (-8 TWh). The fall in fossil fuel generation was supported by subdued demand and sustained renewables generation. Nuclear output rose by 4% (+6 TWh) in Q1 2024.
EU quarterly electricity market reports
The older reports (2008-2020) are available in a dedicated CIRCA BC.
Energy data centre
Consistent and accurate data is very important for a reliable analysis that can be used 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.