Energy prices in Europe: how much did electricity cost in August 2026?

Energy prices in Europe rose noticeably in August 2026, although substantial differences remained between individual markets. Average wholesale day-ahead prices were around EUR 41/MWh in Finland, EUR 118/MWh in Spain, EUR 127/MWh in Germany and EUR 134/MWh in Poland, while some Italian bidding zones exceeded EUR 175/MWh. For investors considering energy-intensive operations in Poland or elsewhere in Europe, location decisions therefore require an assessment not only of average electricity prices, but also market volatility, the energy mix, access to long-term Power Purchase Agreements (PPAs) and available grid connection capacity.

How much did electricity cost in Europe in August 2026?

A comparison of day-ahead markets reveals substantial differences in energy prices in Europe. Some of the lowest levels were recorded in Northern Europe. Finland averaged approximately EUR 41/MWh, while the price in Sicily approached EUR 199/MWh.

For key European markets from an investor’s perspective, the figures were as follows:

The data used in this comparison comes from European energy market platforms, primarily the ENTSO-E Transparency Platform – the central platform operated by the European Network of Transmission System Operators for Electricity – and, for certain Nordic and Baltic countries, from Nord Pool market data. These figures were used to calculate average day-ahead prices for August 2026.

The ENTSO-E Transparency Platform provides public access to data covering electricity market prices, generation, consumption, transmission and balancing across Europe. The comparison shows that price differences between European bidding zones remained substantial in August 2026.

These are not the prices businesses ultimately see on their electricity bills. The wholesale price is only one component of the final cost of electricity, which also includes network charges, taxes, national levies and the terms of the individual supply contract. The European Commission identifies energy costs, network costs, and taxes and other levies as the three main components of an electricity bill.

Why did energy prices in Europe rise in summer 2026?

Gas prices remained one of the main factors, but high temperatures and hydrological conditions limiting the availability of certain energy sources also affected the market in August. Europe’s day-ahead market operates on a marginal pricing mechanism. This means that during hours when gas-fired generation is required to meet demand, its cost can influence the market price even in systems where a substantial proportion of electricity comes from other sources.

The European Commission notes that the shift away from Russian pipeline gas towards the global LNG market has changed the relationship between gas and electricity prices. A higher share of renewable energy reduces costs during many hours, but it also contributes to greater market variability.

The geopolitical situation in the Middle East became an additional factor in 2026. In early September, the European Commission stated that conditions on the global market remained exceptional and that LNG production in Qatar was still suspended. At the same time, heatwaves across Europe increased the use of gas in power generation.

This did not, however, mean that the EU expected a gas shortage. On 3 September, the European Commission and EU Member States assessed that there was no immediate security-of-supply risk, pointing, among other factors, to greater diversification of supply, extensive LNG import capacity and lower gas demand than during the 2021–2022 crisis.

Why do electricity prices vary so widely between European markets?

There is no single European electricity price. Price levels depend on the energy mix, weather conditions, power plant availability, electricity import and export capacity, and the capacity of cross-border interconnections.

The European Commission notes that gas- and coal-fired power plants generally have higher and more volatile operating costs than renewable or nuclear generation. Fossil-fuel generation also carries the cost of CO₂ emissions. The degree of integration with neighbouring power systems is another important factor, as greater transmission capacity makes it easier to import electricity from a lower-cost market.

This helps explain why Finland recorded approximately EUR 41/MWh in August, while Poland exceeded EUR 134/MWh and some Italian bidding zones reached EUR 175–198/MWh. A European average alone therefore does not reflect the actual cost environment facing a specific investment.

Is electricity expensive in Poland compared with the rest of Europe?

In August 2026, Poland was among the more expensive of the European markets analysed, but it was not among the bidding zones with the highest prices. Its average price of approximately EUR 134/MWh was higher than in Germany, France and Spain, but lower than in Czechia, Austria, Hungary and some Italian bidding zones.

However, Poland’s relatively high wholesale electricity prices should not be assessed on the basis of a single month alone. For investors, the direction of change in Poland’s domestic energy mix is also relevant, as a growing share of renewable generation and grid expansion may affect the structure of electricity supply and contracting conditions in the coming years.

According to the latest data from the Polish transmission system operator, Polskie Sieci Elektroenergetyczne (PSE), electricity generated from renewable energy sources accounted for 30.42% of the total electricity generated and fed into the grid in 2025. This represented 49.26 TWh of renewable electricity out of 161.92 TWh supplied to the grid from all generation sources.

Poland’s transmission infrastructure is also being expanded. PSE’s agreed Transmission Network Development Plan for 2025–2034 provides for approximately 4,700 km of new 400 kV transmission line circuits, the construction of 28 new substations and the modernisation of 110 existing substations. PSE’s total estimated capital expenditure exceeds PLN 64 billion by 2034.

Implementation of the plan is intended, among other objectives, to enable the transmission of power from approximately 18 GW of offshore wind farms, support the development of around 45 GW of solar PV and more than 19 GW of onshore wind capacity, and connect the nuclear power plant planned in Pomerania.

What do energy prices in Europe mean for investors?

For a company planning a factory, data centre, cold-storage facility or another energy-intensive operation in Poland or elsewhere in Europe, comparing monthly spot prices should be the starting point of the analysis, not the end of it.

When selecting an investment location, businesses should compare the final electricity cost for their specific consumption profile, the availability of the required capacity and grid connection times, the possibility of purchasing electricity under a PPA (Power Purchase Agreement), a long-term electricity purchase agreement between a generator and an offtaker or arranged with the involvement of an electricity supplier, access to an on-site renewable energy installation or energy storage, and exposure to electricity prices during peak-demand hours.

This is particularly important for projects with high electricity demand. For example, a difference of EUR 20/MWh at annual consumption of 100 GWh translates into approximately EUR 2 million in annual electricity purchasing costs, before network charges, taxes and other bill components are taken into account.

This is also one reason why the reform of the European electricity market gives a greater role to long-term contracts. PPAs allow large consumers to secure electricity purchasing terms over a longer period, while two-way Contracts for Difference (CfDs) are primarily used as a mechanism for stabilising revenues from new generation assets. More broadly, greater use of long-term contracts is intended to reduce the exposure of both consumers and producers to short-term market fluctuations.

Will high energy prices remain a challenge for European industry?

High and volatile energy prices remain a significant cost factor for European industry, particularly for energy-intensive sectors. The issue extends beyond wholesale prices: for businesses, the key figure is the final cost of electricity, including network charges, taxes and other components of the bill.

The European Commission continues to identify high energy prices as one of the challenges affecting the competitiveness of the European economy. Although market conditions have stabilised compared with the peak of the 2021–2023 energy crisis, businesses remain exposed to fluctuations in gas prices, electricity prices and CO₂ emission allowance prices.

Eurostat data illustrates the scale of energy costs borne by businesses. In the second half of 2025, the average electricity price in the EU for non-household consumers using between 500 and 2,000 MWh annually was EUR 18.37 per 100 kWh, equivalent to EUR 183.7/MWh. The highest levels were recorded in Ireland, Cyprus and Germany.

Eurostat data therefore shows that cost pressure does not end at the wholesale market. For European industry, the ability to stabilise energy costs through long-term contracts, own-generation assets, energy storage and effective management of consumption profiles is becoming increasingly important. For new investments, the cost and availability of electricity consequently form part of location analysis alongside labour costs, infrastructure and market access.

Sources:

• ENTSO-E Transparency Platform
• European Commission – Electricity prices
• European Commission – Gas Coordination Group, 3 September 2026
• Eurostat – electricity prices for businesses
• Polskie Sieci Elektroenergetyczne (PSE)