Study on drivers of wholesale electricity prices

26.03.2026

A new study published by Europex and prepared by Frontier Economics confirms that wholesale electricity prices and volatility in Europe are primarily driven by supply and demand fundamentals – including gas prices, weather conditions and system tightness.
Based on data from 39 bidding zones across 26 countries (2018-2024), the report shows that the increased volatility observed during the energy crisis (2021-2023) was largely the result of external factors rather than structural shortcomings in market design.
The study also highlights the important role of short-term wholesale markets in efficient price formation, security of supply and investment signals.

Full report can be found on the Europex Website under the following link: https://www.europex.org/reports/europex-study-the-fundamental-drivers-of-wholesale-electricity-prices-in-europe/