Electricity and Gas Market:
The Latest Trends

Weekly Analysis – October 27, 2026

Electricity futures recorded further increases, with YR-27 at 134.25 €/MWh (+18.40), YR-28 at 73.75 €/MWh (+2.75) and YR-29 at 67.50 €/MWh (+2.25). The sharp rise in 2027 reflects the pressure of gas prices on generation costs, while longer-term contracts are also incorporating a higher energy risk premium.

💡 Key Factors

1. Rising gas prices drive electricity futures higher: The surge in European gas prices increases expected combined-cycle generation costs and reinforces upward pressure on electricity prices, particularly for 2027 contracts.
2. Balancing services continue to influence system costs: Technical constraint management and balancing requirements to ensure grid stability keep operating costs in focus, particularly in a system with high renewable penetration and variable generation.
3. Renewable generation partially limits the impact of gas prices: Wind and solar generation reduce dependence on combined-cycle gas plants during certain hours, although their variability and the system’s flexibility requirements maintain exposure to periods of high prices.