The European Union must accelerate electricity demand growth and invest more heavily in storage and grid flexibility to fully realise the benefits of the energy transition, according to industry association Eurelectric’s Power Barometer 2025 report.
While the EU power sector continued to decarbonise in 2024, demand recovery remains slow and grid constraints persist, the group said. Electricity demand increased by just 1% last year and remains 7% below 2021 levels, putting at risk the bloc’s target to reach 32% electrification by 2030.
“Sluggish demand remains a barrier to sustained investments,” said Kristian Ruby, secretary general of Eurelectric. “Periods of oversupply and price spikes persist. To address market volatility, we need to invest in grids, storage and flexibility.”
Average wholesale power prices fell to €82 per megawatt hour in 2024, down from a peak of €227/MWh in 2022, as renewable energy and nuclear accounted for 72% of total generation. However, price disparities remain across the EU, particularly in regions still dependent on fossil fuels, which are more exposed to volatility.
The report called for targeted policy measures to encourage electrification across sectors such as transport, heating, and industry. Eurelectric also urged the creation of clear investment signals to drive upgrades in transmission infrastructure and support for flexible resources like energy storage.
“Boosting demand is critical not just for climate targets, but also to unlock the full economic value of the clean energy already being produced,” the report concluded.
