EU gas and electricity markets in the second quarter of 2025 saw a further return to more stable and predictable levels, according to the new quarterly reports for both markets published today. Wholesale gas prices seemed to turn the corner, declining for the first time since early 2024, as LNG imports surged. At the same time, solar generation reached record levels, but there was also a significant drop in hydro generation.
The latest Gas Market Report highlights average wholesale prices were 35 €/MWh – still 10% higher than in the same period in 2024, but 24% down on the previous quarter, indicating the start of a new declining trend with lower prices ahead. This reversal of direction was driven by the ramp-up of global LNG supply, less demand and milder weather with the start of the summer – and bodes well for the months ahead. Retail gas prices also saw an end to the rising trend of the past 3 quarters, easing back 2% from the previous quarter and 9% year on year – from 111.4 €/MWh in April to 108.7 €/MWh in June.
Gas consumption was 2% lower than in Q2 of 2024, indicating the stabilisation of EU gas demand at a lower level that the historical average before 2020. The quarterly figure was roughly half of the first quarter figure – as expected – due to the end of the heating season and increase in renewables production. Gas storage levels finished the heating season more than 30% lower than the previous 2 years, but still above 2020 and 2021 levels.
Import figures show an increase in gas volumes to 75 billion cubic metres (bcm) – a 9% increase on the previous quarter and 8% on the previous year. The main reason for this was the record 35 bcm imports of LNG, an increase of 11% compared to the previous quarter and a significant 37% increase year-on-year reflecting the replacement of Russian pipeline gas by LNG to a large degree. LNG represented 46% of gas imports, with pipeline down to just 54% – with Norway the largest overall supplier with 30% of the total (22 bcm). The United States supplied 58% of EU LNG (20.3 bcm), followed by Russia (14%, 4.9 bcm) and Qatar (8%, 2.7 bcm). EU pipelines imports were 41 bcm, an 8% increase quarter-on-quarter and a decrease of 9% compared to the previous year. The year-on-year decrease reflected the halt of Russian pipeline imports via Ukraine combined with a year-on-year reduction in imports from North-Africa.
Russian gas imports, both pipeline and LNG, displayed a significant decline in the second quarter of 2025. The decline was 29% year-on-year and 9% quarter-on-quarter. Russia’s share in total EU gas imports contracted by 6 percentage points to 12% from 18% in Q2-2024. Russian pipeline gas imports were halved (-50%) compared to the previous year and fell by 15% quarter-on-quarter. Russian LNG exports also declined (-3% quarter-on-quarter and -1% year-on-year).
The Electricity Market Report confirms that solar generation rose to a new record high for a second quarter, reaching 98 TWh (+20%). However, hydropower experienced a significant decline (-17%), albeit from exceptionally high levels in the previous year. Wind onshore rose slightly (+3%) but this was balanced out by a decrease in wind offshore (-6%). Nuclear generation declined slightly as well (-2%). The share of renewables stayed stable at 52% in Q2 2025 (same as in Q2 2024), while the share of fossil fuels rose very slightly to 25% (from 24% in Q2 2024).
This, together with higher wholesale gas prices, led to a slight increase in electricity prices compared to the previous year. However, prices were much lower than in the first quarter of the year largely due to a relative decline in gas prices, indicating a positive trajectory for the upcoming months.
Electricity consumption in the EU stayed flat (0.4%) compared with Q2 2024. At national level, 17 EU countries, saw an increase in electricity consumption, while the remaining countries were stagnant or experienced a decline. Demand levels for Q2 2025 were still below the pre-crisis average (-6%, compared to the 2015-2019 range).
Retail electricity prices for households in EU capital cities rose marginally by 3% in Q2 2025 (to 246 €/MWh). This is despite the energy component decreasing compared to last year’s quarter as both taxes and network costs increased. Additionally, there was significant variation between EU countries with several seeing double-digit percentage increases (e.g. Austria, Luxembourg, Poland) and others seeing large decreases in retail prices due to lower energy costs (e.g. Slovenia, Estonia, France).
Finally, with over 720 000 new electric vehicles sold in Q2 2025, the quarter set an all-time record for sales of EVs in the passenger car segment in the EU – a yearly increase of almost 30% compared with Q2 2024. This translates into a 23% EV share in the EU passenger car market, which is more than two times the market share registered in the United States (10%). Sweden (62%), as well as Denmark (60%), Finland (54%) and the Netherlands (52%) were among the markets where more than half of all passenger cars sold were Battery electric or Plug-in hybrid vehicles.