European power markets faced extraordinary conditions in 2021 as the worst effects of the pandemic gave way to the crisis of record high costs. The unprecedented extent of these conditions exposed underlying fragilities in power systems and lay bare the challenges of accelerating the energy transition. As commodity prices escalated in Autumn and higher input costs filtered through to the power sector, record prices were registered on almost a daily basis, a situation exacerbated by plant availability issues and low wind speeds. Energy costs are now top of the political agenda. In this review of power volumes and prices in 2021, 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.