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In the first half of 2025, wholesale electricity prices in the European Union were about 30% higher than in same period of 2024, while a 40% increase was recorded in the United States. The penetration of negative prices in the EU continues, with their share doubling in H1 2025, according to the latest report of the International Energy Agency.
Wholesale electricity prices in the EU averaged around USD 90 per MWh as costs were mostly underpinned by natural gas prices, which were on average about 20% above the levels from 2024, IEA’s Electricity Mid-Year Update 2025 reads.
Prices saw upward pressure from a boost in fossil-fired generation due to a year-on-year drop in electricity generation from wind and hydropower.
While average power prices remained below the 2023 levels, they were higher than in 2019, according to IEA. The latter is a reference year because it was the last one before turbulences started – the COVID-19 pandemic, energy crisis, and the war in Ukraine.
Electricity prices in the Nordics remained the lowest in Europe
Latest futures prices in the EU average USD 80 per MWh for 2026, indicating a decline of around 15% from 2025, the report underlines.
High gas prices also affected the electricity market in the US, combined with colder weather. Power prices averaged around USD 48 per MWh. However, the increase was from a low base, as prices in the first half of 2024 were the lowest for the first half of the year since 2020, the report notes.
Average electricity prices in the Nordics remained the lowest in Europe, falling by more than 20% year-over-year in the first six months of 2025 to about USD 40 per MWh. It was the result of an increase in wind power generation and higher hydropower output, according to the report.
The update brings details on Germany, France, Japan, India, Australia, and the United Kingdom as well.
Occurence of negative prices doubled
IEA notes that the frequency of negative wholesale prices is increasing in various markets, underscoring the need for greater flexibility in supply and demand. The authors of the report propose appropriate regulatory frameworks and market designs to boost greater demand response and energy storage.
The share of hours with negative prices on the wholesale market reached 8% to 9% in the first half of the year in countries such as Germany, the Netherlands, and Spain – up from between 4% and 5% in 2024, the report reads.
The average price this year in the EU is expected to be twice as high as in the US and about 50% higher than in China
Electricity prices for energy-intensive industries continued to vary significantly across regions. After declining since their 2022 peak, they are expected to rise year-on-year in 2025 in the EU, driven by higher wholesale price levels.
The average price this year in the EU is expected to be twice as high as in the US and about 50% higher than in China, according to IEA projections. By comparison, in 2019, prices in the EU were approximately 50% higher than in the United States and 20% higher than in China.
The cost differences continue to pose challenges for the competitiveness of energy-intensive industries in the EU, IEA stressed.
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