Gas prices are rising, while electricity is holding up better. But the gap between the two curves is not enough to safeguard Europe’s energy system. Between February and August 2026, EU electricity prices rose 22.8%, compared with an 88.4% increase in gas. The Power Barometer 2026, presented by Eurelectric, the European electricity industry association, sees this gap as evidence that clean power generation can cushion shocks caused by fossil fuels.
“2026 has seen severe disruption of global energy markets, once again exposing the risks of reliance on imported fossil fuels”, said Kristian Ruby, Secretary General of Eurelectric. “Amidst the turmoil, we’re seeing real proof that Europe’s bet on clean electricity is paying off.”
Clean generation mitigates the shock, but does not eliminate vulnerability
The first test came with the closure of the Strait of Hormuz. Between February and May, gas prices rose by 41%, while EU electricity prices fell by 7%. According to the report, this divergence shows how clean power generation helps contain the pass-through of fossil fuel price volatility to the electricity market.
The summer changed the picture. Record heat pushed electricity prices higher while gas prices reached new highs. At the same time, hydropower generation in the Nordic countries declined, while nuclear availability fell because of high river temperatures, low water levels and scheduled maintenance. The system therefore faced pressure on several fronts: not only from the cost of imported fuels, but also from reduced availability of some generation sources.
Electricity was not immune to price rises, but it absorbed the shock better than gas. This distinction matters for consumers and industry because it points to reduced exposure to volatility, not its elimination. The report states that clean sources accounted for 72% of EU electricity generation in 2026 (up to September). Eurelectric argues that this share limited the impact of fossil fuels on prices.
Storage, the Bulgarian case and Europe’s gap
The transition from clean power to economic resilience is far from automatic. In Eurelectric’s assessment, grids, storage and flexibility solutions are needed to make full use of the benefits of locally generated electricity. In short, the question is not only how much clean energy is generated, but also how the system can reduce its reliance on expensive fuels when demand is at its highest.
The report uses Bulgaria to illustrate this relationship. Following the development of 5.4 GW of battery capacity, wholesale electricity prices moved from 21% above the EU average in 2024 to 8.3% above it in 2026. Eurelectric attributes this improvement to reduced dependence on fossil fuels during periods of high demand. The comparison shows, however, that Bulgarian prices have moved closer to the European average, not necessarily that they have decreased. The report links this narrowing gap to the expansion of storage capacity, an improvement that should not necessarily be interpreted as a guarantee of cheaper electricity for businesses and consumers.
Across Europe, the infrastructure gap remains wide. In 2025, utility-scale storage capacity stood at 64 GW. Even with the 78 GW of additional capacity planned, the total would remain well below the EU target of 200 GW by 2030 cited in the report. As stated in a press release, “Eurelectric calls for accelerated permitting of grids, storage and clean power, stronger incentives for flexibility, and a stable investment framework that preserves efficient market signals supporting electrification”.
Cover: Eurelectric