Europe power: 2023 in review

Europe’s power market was in a precarious position entering 2023, and in the end, it was good fortune – the avoidance of a harsh winter – that put a halt to the surging prices of 2022. The downward trend in commodity prices – the TTF gas price dropped 43% between January and December – took much of the sting out of wholesale power prices. Power demand fell by 3% in 2023, partially reflecting the success of national load reduction strategies, but also due to demand response to continued high retail prices. On the supply-side, strong hydro conditions and growth in wind and solar output eased reliance on gas (-18%) and coal (-27%). In this review of power volumes and prices in 2023, a development of our usual monthly volumes and price tracker, we examine Europe’s largest electricity markets, exploring key influences, events and market dynamics in the past 12 months. The data supporting this report can be found in the accompanying download.