EU electricity market integration

  • Electricity
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Wind and solar generation at sunset

2025 Monitoring Report

The European electricity market - the largest integrated market in the world - has become a cornerstone of reducing costs and accelerating the clean energy transition. Its coordinated day-ahead and intraday “market coupling” now covers almost all Member States, improving competition and efficient electricity flows across borders. 

Markets remain resilient, but volatility persists. Flexibility is now the central challenge. Delays in cross-border projects and weak long-term market signals add to the risks for consumers.

What trends did ACER monitoring find in 2024?

  • EU market integration brings much value and helps mitigate high electricity prices.
  • Price volatility in 2024 (from price spikes to lows) highlights the need for more flexibility.
  • Long-term markets remain illiquid, limiting investment signals.
  • Cross-border integration reduces costs, but delays in implementing projects persist.
  • Balancing market integration delivered €1.6 billion in 2024, showing strong benefits.
  • Forward markets lack depth: trading beyond two years is rare, limiting price signals for investment. Power Purchase Agreements (PPAs) are growing but vary widely in design.
  • Day-ahead integration is consolidating and intraday markets are evolving fast, though the full benefits of intraday markets will only be reached once flow-based allocation is in place.

ACER’s recommendations

ACER points to several priorities that are key to resilience:

  • Reinforcing flexibility: Accelerated investment is needed in demand response, storage and backup generation to reduce consumer exposure to price spikes.
  • Faster delivery of delayed cross-border projects: Ensure timely completion of interconnectors and adoption of flow-based capacity allocation in intraday markets.
  • Wider transmission system operators' (TSOs') participation in balancing platforms: Broaden engagement to cut costs, lower price volatility and ensure more efficient system balancing.
  • Stronger forward markets: Encourage more active long-term trading and well-designed PPAs and Contracts for Difference (CfDs) to provide reliable price signals and support investments.
  • Structural move to flow-based allocation in the intraday timeframe: To ensure efficient capacity use and reduce congestion-related costs.
  • Enhanced monitoring and enforcement: Strengthen oversight for TSOs, Member States and market participants to ensure rules are applied consistently and consumers benefit.

Highlights

  • €1.6 billion in welfare gains from balancing market integration.

  • 3 times the average price - Spain’s price spike during the November 2024 heatwave.

  • 1000 EUR/MWh Southeast Europe evening price peaks in summer 2024. 

Report

ACER’s 2025 market integration Monitoring Report:

  • analyses progress in EU electricity market integration;
  • examines weather-driven electricity price volatility;
  • monitors the PPAs market;
  • assesses progress on flow-based allocation and cross-border projects; and
  • shows how delays in integration projects prevent consumers from benefiting from lower costs.

  Access the report

Power Purchase Agreements Country Sheets

For the first time, ACER publishes its PPAs country sheets to increase the transparency of the Power Purchase Agreements market both at EU and country level. These short 1-pagers for 21 EU Member States plus Norway provide insights into:

  • PPAs' uptake and key components;
  • guarantees (e.g. state-backed, EIB mechanisms) and platforms; and
  • barriers and opportunities.

  Access the Country Sheets

Infographic

Interested in the main highlights of our report?

  Dive into our infographic

Additional information

Check out our electricity market dashboards, with data up to Q3 2025. They show:

  • daily, monthly and yearly price and volume data for the day-ahead and intraday markets;
  • volumes by country and delivery horizon for the forward and future markets.

Access the underlying datasets.

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The integrated EU gas system has proven resilient, reconfiguring to align gas flows with shifting supply and demand

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Gas-capacity-booking
Intro News
This report on gas network use provides a comprehensive overview of capacity booking and usage trends in the EU, exploring how diversified supply, demand shifts and evolving capacity booking strategies are reshaping gas flows across the EU.

The integrated EU gas system has proven resilient, reconfiguring to align gas flows with shifting supply and demand

What is it about?

This report on gas network use provides a comprehensive overview of capacity booking and usage trends in the EU, exploring how diversified supply, demand shifts and evolving capacity booking strategies are reshaping gas flows across the EU.

This monitoring report compares gas capacity use and booking data from 2021 to mid-2025 and analyses the main market shifts triggered by the energy crisis in 2022 (e.g. phase-out of Russian natural gas, increase in liquefied natural gas (LNG) imports, and lower gas demand). It also examines the impact of ending Russian gas transit via Ukraine as of 1 January 2025 on flow dynamics and capacity use across Southeast Europe.

What are the key findings? 

The EU’s integrated gas system has proven resilient to the energy crisis, reconfiguring its gas flows in response to changing supply and demand patterns. 

  • Europe’s reliance on Russian gas pipeline imports has fallen from circa 40% to 6% of total imports since 2021.
  • Since the end of 2021, gas flows have reversed direction at 40% of gas interconnection points across the EU, driven by the phasing out of Russian pipeline gas.
  • Lower gas demand and increasing LNG’s supply reduced transit flows in some countries, leading to fewer capacity bookings and putting upward pressure on tariffs.
  • Capacity bookings are adapting to new gas market conditions. Many long-term legacy contracts are expiring or have been terminated due to the Russian invasion of Ukraine. Instead shippers are now securing capacities on alternative routes through auctions underpinned by the EU-wide capacity allocation mechanism (CAM) network code.
  • Lower pipeline congestion at EU level, but some supply bottlenecks persist. Infrastructure upgrades and lower gas demand have eased the peak congestion that affected Northwest Europe in 2022. Since 2024, high network use in Southeast Europe (including increased gas volumes to Ukraine in 2025 following the end of Russian gas transit), created significant congestion risks at several interconnection points in the region.

What are ACER’s recommendations?

  • Transmission system operators (TSOs) should enhance transparency and coordination in gas capacity optimisation.
  • National regulators should ensure a full and consistent application of the EU rules (CAM network code) without exceptions to maintain a transparent, predictable, and standardised capacity allocation process, fostering competition and integration of EU gas market.
  • Future gas infrastructure investment by Member States should be targeted to solve persistent bottlenecks, align with the EU’s energy and climate goals and ensure security of supply. Regulators must ensure transparent and efficient distribution of congestion revenues to reduce and stabilise tariffs for European network users.

What are the next steps?

ACER will provide its next key developments in European gas wholesale markets report in early 2026. See the Q3 2025 monitoring report, also published this week.  

Capacity use and booking trends in European natural gas markets

  • Gas
Image
Gas-capacity-booking

2025 Monitoring Report

This report on gas network use provides a comprehensive overview of capacity booking and usage trends in the EU, exploring how diversified supply, demand shifts and evolving capacity booking strategies are reshaping gas flows across the EU.

This monitoring report compares gas capacity use and booking data from 2021 to mid-2025 and analyses the main market shifts triggered by the energy crisis in 2022 (e.g. phase-out of Russian natural gas, increase in liquefied natural gas (LNG) imports, and lower gas demand). It also examines the impact of ending Russian gas transit via Ukraine as of 1 January 2025 on flow dynamics and capacity use across Southeast Europe.

What are the key findings?

The EU’s integrated gas system has proven resilient to the energy crisis, reconfiguring its gas flows in response to changing supply and demand patterns. 

  • Europe’s reliance on Russian gas pipeline imports has fallen from circa 40% to 6% of total imports since 2021.
  • Since the end of 2021, gas flows have reversed direction at 40% of gas interconnection points across the EU, driven by the phasing out of Russian pipeline gas.
  • Lower gas demand and increasing LNG’s supply reduced transit flows in some countries, leading to fewer capacity bookings and putting upward pressure on tariffs. Gas demand in the EU is expected to further decline from 40 to 90 billion cubic meters by 2030.
  • Capacity bookings are adapting to new gas market conditions. Many long-term legacy contracts are expiring or have been terminated due to the Russian invasion of Ukraine. Instead shippers are now securing capacities on alternative routes through auctions underpinned by the EU-wide capacity allocation mechanism (CAM) network code.
  • Lower pipeline congestion at EU level, but some supply bottlenecks persist. Infrastructure upgrades and lower gas demand have eased the peak congestion that affected Northwest Europe in 2022. Since 2024, high network use in Southeast Europe (including increased gas volumes to Ukraine in 2025 following the end of Russian gas transit), created significant congestion risks at several interconnection points in the region.

What are ACER’s recommendations?

Ensuring a flexible energy system and an efficient decarbonisation process requires robust regulatory oversight and close coordination among stakeholders. As such, ACER recommends: 

  • Transmission system operators (TSOs) should enhance transparency and coordination in gas capacity optimisation. At the same time, regulators should facilitate efficient gas capacity use across Member States.

  • National regulators should ensure a full and consistent application of the EU rules (CAM network code) without exceptions to maintain a transparent, predictable, and standardised capacity allocation process, fostering competition and integration of EU gas market.

  • Future gas infrastructure investment by Member States should be targeted to solve persistent bottlenecks, align with the EU’s energy and climate goals and ensure security of supply. Regulators must ensure transparent and efficient distribution of congestion revenues to reduce and stabilise tariffs for European network users.

Highlights

  • 40%

    of EU interconnection points have seen their flow direction reversed since 2021 to adjust to new market dynamics. 

  • -30%

    gas capacity booked at EU level since 2021, showing Europe’s decreasing gas demand and increasing supply flexibility driven by higher LNG imports.

  • 50%

    of gas capacity used is contracted through the EU wide standardised capacity allocation mechanism, promoting a more transparent and predictable capacity allocation process.

Report

This report:

  • provides a comprehensive overview of capacity booking and usage trends in the EU;

  • explores how diversified supply, demand shifts and evolving capacity booking strategies (triggered by the energy crisis in 2022) are reshaping gas flows across the EU.

  Access the report. 

 

Additional information

No

Key developments in European gas wholesale markets - Q3 2025

  • Gas
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Gas pipelines

2025 Monitoring Report

This report provides insights into European gas wholesale markets during the final months of the gas summer season (July to September 2025), highlighting main trends in gas supply, demand and market prices. 

The analysis helps inform policies aimed at ensuring secure and competitively priced gas in the EU. 

What trends did ACER monitoring find?

  • Prices and volatility: After a challenging and volatile first half of 2025, European gas markets entered one of the calmest periods in recent years during the third quarter. Both wholesale prices and market volatility declined. Gas imports to the EU increased even as pipeline gas from Russia further declined. Orderly storage filling contributed to the calmness of gas markets. Imports increased year-on-year, while consumption remained in line with Q3 2024 and about 19% below the long-term average of the last five pre-energy crisis years (2017-2021).
  • Gas storage: Injections into underground storage exceeded levels recorded in the previous two summers. Despite higher injections, European gas storage stocks reached 82% capacity by the end of Q3 2025, below the levels recorded at the start of the last three heating seasons. This is because of large withdrawals during the 2024/2025 winter. This leaves European markets more reliant on imports over the coming winter, particularly if demand is higher than expected.
  • LNG imports: Amid high storage injection demand in both the EU and Ukraine and lower Russian pipeline supply, liquefied natural gas (LNG) imports increased by 38% year-on-year. At the same time, demand from other major buyers (such as China and Japan) remained stable and global LNG production rose, leading LNG prices to decline even as import volumes increased.
  • EU gas market integration drove gas flows in the right direction to Central and Eastern Europe: As LNG’s share of supply grew, gas flows adjusted to supply markets with limited or no direct access to LNG. This eastward redirection of gas flows reflected wholesale market signals (from lower- to higher-priced hubs). This means price differences between Western European hubs and those in Italy, Central and Eastern Europe were higher than usual for a second consecutive quarter.

Looking ahead 

It remains uncertain whether the price stability observed in Q3 2025 will continue or prove to be temporary. What is clear is the ongoing expansion of the global LNG market. Large liquefaction terminals that began operations in 2025 are already having a positive impact on the availability of LNG cargoes. More projects are expected to come online in the coming months.

Highlights

  • 19%

    lower EU gas consumption compared with long-term average.

  • -8%

    quarter-on-quarter decline of EU average spot gas prices.

  • +38%

    year-on-year increase in LNG imports, supporting storage injections amid lower Russian pipeline supply.

Report

ACER’s report on key developments in European gas wholesale markets (Q3 2025) analyses:

  • market trends and price developments;
  • storage and import dynamics; and
  • gas flows and market integration across the EU.

  Access the report

Additional information

No

EU gas markets stabilise amid rising LNG imports

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Gas pipelines
Intro News
ACER’s latest report on key developments in European gas wholesale markets examines key trends in gas supply, demand and market prices during the final months of the gas summer season (July to September 2025).

EU gas markets stabilise amid rising LNG imports

What is it about?

Published today, ACER’s latest report on key developments in European gas wholesale markets examines key trends in gas supply, demand and market prices during the final months of the gas summer season (July to September 2025). The analysis helps inform policies aimed at ensuring secure and competitively priced gas in the EU. 

What trends did ACER monitoring find? 

  • Wholesale prices and volatility declined, marking one of the calmest periods for European gas markets in recent years. Higher gas imports, stable consumption and orderly storage filling contributed to this stability.
  • Gas storage: Injections into underground storage exceeded levels of the previous two summers. European stocks reached 82% capacity, below levels at the start of the last three heating seasons, leaving EU markets more reliant on imports this winter.
  • LNG imports: Liquefied natural gas (LNG) imports rose by 38% year-on-year amid high storage demand and lower Russian pipeline supply. Stable demand from other major buyers and rising global LNG production contributed to lower prices despite higher import volumes.
  • EU gas market integration drove gas flows in the right direction to Central and Eastern Europe: As LNG’s share of supply grew, gas flows were redirected eastward to markets with limited or no direct LNG access, reflecting wholesale market signals (from lower- to higher-priced hubs).

ACER and European Commission workshop: REMIT implementation updates

ACER and European Commission workshop: REMIT implementation updates

Online
28/11/2025 09:00 - 13:00 (Europe/Brussels)
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ACER to review the methodology for electricity redispatching and countertrading cost sharing for the Core region

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electricity pylon sharing costs
Intro News
ACER initiates the review of its Decision 30/2020 on the electricity redispatching and countertrading cost sharing methodology for the Core capacity calculation region.

ACER to review the methodology for electricity redispatching and countertrading cost sharing for the Core region

What is it about?

Today, ACER initiates the review of its Decision 30/2020 on the electricity redispatching and countertrading cost sharing methodology for the Core capacity calculation region.  

What is a capacity calculation region?

A capacity calculation region is a set of electrically interdependent bidding zone borders, where capacity calculation, regional operational security, redispatching and countertrading costs sharing tasks are coordinated by that region’s transmission system operators (TSOs).

The Core capacity calculation region involves the TSOs and bidding zone borders of Austria, Belgium, Croatia, Czech Republic, France, Germany, Hungary, Luxembourg, the Netherlands, Poland, Romania, Slovakia and Slovenia. It is the biggest European region, involving 13 Member States, 16 TSOs and 19 bidding zone borders.

What is the methodology about? 

The cost sharing methodology allocates the costs from redispatching and countertrading remedial actions within a capacity calculation region. These actions are triggered to solve network congestions occurring within the region. 

Specifically, this methodology tracks how each action affects congested network elements and assigns the related costs to the responsible TSOs, based on the order of flow types (loop, internal, allocated and power-shifting transformer flows). Loop flows are charged first, however according to the Electricity Regulation, its portion below a given threshold is exempted.

Why amend the methodology?

On foot of the ACER Board of Appeal Decision of 31 July 2025, ACER is now revising its Decision 30/2020 and the methodology accordingly.

What are the next steps?

ACER aims to adopt its Decision by the end of January 2026.

ACER to decide on amending the methodology for procuring electricity balancing capacity

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Electricity pylons on a green field
Intro News
ACER received a proposal from the European Network of Transmission System Operators for electricity (ENTSO-E) to amend the methodology for the regional procurement of balancing capacity.

ACER to decide on amending the methodology for procuring electricity balancing capacity

What is it about?

On 26 September 2025, ACER received a proposal from the European Network of Transmission System Operators for Electricity (ENTSO-E) to amend the methodology for the regional procurement of balancing capacity.

What is the methodology about?

Transmission system operators (TSOs) must always keep the power system in balance. TSOs usually procure the balancing capacity needed at national level, but to lower procurement costs, they may opt for utilising available voluntary balancing bids from other countries (e.g. made available when local capacity exceeds national needs).  If transmission capacity is expected to be available across bidding zones during balancing, these bids can also be used to reduce balancing capacity needs. 

The methodology for the regional procurement of balancing capacity enables regional coordination centres (RCCs) to evaluate how voluntary balancing bids can be utilised effectively across borders. Following this evaluation, regional coordination centres provide TSOs with recommendations to reduce the volume of procured balancing capacity, hence utilising the flexibility of the EU electricity system. 

Why amend the methodology?

As requested by ACER, European TSOs propose to update the reliability parameters used by regional coordination centres to assess the availability of cross-zonal capacity and voluntary balancing bids. This is important as reliability parameters need to reflect the most relevant data, enabling TSOs to procure balancing capacity efficiently, and at the same time managing their operational risks. This change should foster a more transparent and coordinated process and improve the balancing of EU power system.

What are the next steps? 

ACER will decide by 5 January 2026.

Interested parties may submit comments or questions to ACER-ELE-2025-009@acer.europa.eu by 31 October 2025.