Europe power markets long-term outlook H2 2018

The patience of national policy makers has been stretched too far by low emissions costs and the continued competitiveness of coal in European power supply – where a fuel cannot be priced out of a market, it can be ruled out by policy. With marked reductions in power supply from coal and nuclear, we expect to see support for generation from gas. The falling costs of wind and solar are facilitating major changes in subsidy and support regimes. While competitive market arrangements continue delivering value, subsidy-free opportunities are also becoming a reality – although choice of market, site and technology remain critical to project success. This report presents our long-term outlook for European power markets to 2040, including a full summary of our regional view and an outline of developments in individual key markets.