European winter electricity prices have reached their highest premium since the 2022 energy crisis. A combination of low gas storage levels and weak hydropower output is tightening the market ahead of the heating season, with winter 2026 contracts trading 20% above 2027 benchmarks. Gas storage currently stands at 38.2%, significantly below the EU target of 90%. This shortage, compounded by LNG flow disruptions, has pushed baseload prices in Germany and Italy above 110 and 120 euros per megawatt hour, raising fresh concerns over regional energy security.
