Weak demand and price volatility highlight the need for electrification and flexibility. According to Eurelectric estimates, in 2025 power sector emissions stood at around 45% of 1990 levels, reflecting three decades of steady progress in decarbonisation. Solar output rose by 60 TWh year on year – equivalent to Portugal’s entire annual electricity demand. Wholesale day-ahead electricity prices averaged €88/MWh in 2025 – below 2023 levels but slightly higher than in 2024. “Renewables are reducing Europe’s exposure to fossil fuel prices, but weak electricity demand risks slowing investments.
