Usman Salis
In the European Union, countries that generate electricity using carbon neutral methods are expected to pay lower energy costs in 2026. According to the Centre for Research on Energy besides Clean Air, costs for gas are rising and this situation tests how secure the energy supply is in Europe. CREA estimates that the European Union can save €5.8 billion in 2026 if it uses renewable sources. By using those sources, the region replaces gas which is expensive in the power system.
As the conflict in Iran continues, the markets for gas in Europe are unstable. CREA says that prices for Dutch TTF gas rose by 68 % to reach €52.8/MWh two days after the initial military actions. Due to the events, global shipments of liquefied natural gas changed direction. And buyers in Asia competed for shipments that are usually sent to Europe.
In this report the authors state that Europe is more secure now than it was during the energy problems of 2022, because clean energy makes electricity prices depend less on gas prices. When gas prices rose by €1/MWh in 2025, electricity prices rose by €0.37/MWh. For the market this is a 8 % reduction in the price connection when compared to the year 2022.
To see the most benefits, countries must use the highest proportion of clean electricity. CREA estimates that Denmark, Finland, France, Sweden or Slovakia can save as much as €8.5 billion during this year. With those savings, they gain 58 % more than countries that use a large amount of fossil fuels. Such countries include Poland, Italy, Greece, Estonia and the Netherlands.
It is clear that clean power is not only a tool for policies regarding the climate. If the energy market is under pressure, clean power protects the economy. By using it countries are less affected by sudden changes in gas prices. There is also a benefit for households and businesses because they do not face the largest increases in their electricity bills.
Usman Salis
