Europe’s energy crisis is making the market nervous. And analysts expect record-high prices to persist

Published

4 years ago

September 16, 2021

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Round bales of straw drying on the field are seen in front of the power station operated by RWE AG near Rommerskirchen, Germany on August 10, 2021. The cost of natural gas and electricity has surged across Europe.

Ying Tang | NurPhoto | Getty Images

LONDON — European power prices have spiraled to multi-year highs on a confluence of factors in recent weeks, ranging from extremely strong commodity and carbon prices to low wind output.

What’s more, the record run in energy prices is not expected to end any time soon, with energy analysts warning market nervousness is likely to persist throughout winter.

The October gas price at the Dutch TTF hub, a European benchmark, was seen to climb to a record high of 79 euros ($93.31) a megawatt-hour on Wednesday. The contract has risen more than 250% since January, according to Reuters, while benchmark power contracts in France and Germany have both doubled.

In the U.K., where electricity bills are now the most expensive in Europe, power prices have soared amid the country’s high dependence on gas and renewables to generate electricity.

British day-ahead electricity prices rose nearly 19% to reach 475 pounds ($656.5) on Wednesday, Reuters reported. The contract was already trading near record highs shortly after a fire at a U.K.-France power link cut electricity imports to Britain.

“By far the biggest factor is gas prices,” Glenn Rickson, head of European power analysis at S&P Global Platts Analytics, told CNBC via email.

Higher gas prices have also been a “big driver” in lifting carbon and coal prices to record highs too, Rickson said, although he noted there are other supporting factors at play, such as low wind generation and nuclear plant unavailability across the continent.

Carbon prices in Europe have nearly trebled this year as the European Union reduces the supply of emissions credits. The EU’s benchmark carbon price climbed above 60 euros per metric ton for the first time ever in recent weeks, trading slightly below this threshold on Thursday.

The EU’s Emissions Trading System is the world’s largest carbon trading program, covering around 40% of the bloc’s greenhouse gas emissions and charging emitters for every metric ton of carbon dioxide they emit. Record carbon prices have made highly polluting sources of energy generation even less attractive because coal, for example, emits more carbon dioxide when burnt.

Rickson said the outlook for European power prices this winter will be “highly dependent” on gas prices, adding that he expects gas prices to rise even further in the coming months. “Aside from the ‘average’ picture, we expect prices to be highly volatile, with swings from low or even negative hourly prices when wind generation is high, to very high prices as already seen when wind is low, and demand is high.”

How did we get here?

European gas prices have accelerated since the start of April, when unseasonably cold weather conditions meant Europe’s gas in storage dipped below the pre-pandemic five-year average, indicating a potential supply crunch.

Europe has since struggled to bring gas supplies that are necessary for the winter period back to where they should be. An economic rebound as countries eased Covid-19 restrictions also coincided with higher-than-expected demand that led to a shortage of gas.

An output filtration facility of a gas treatment unit at the Slavyanskaya compressor station (operated by Gazprom), the starting point of the Nord Stream 2 offshore natural gas pipeline. According to Russia’s Deputy Prime Minister Alexander Novak, the construction of Nord Stream 2 will be completed by the end of this year.

Peter Kovalev | TASS | Getty Images

Further to this, Russia has been seen to slow its delivery of piped natural gas to the region, raising questions about whether this may be a deliberate move to bolster its case for starting flows via Nord Stream 2. The controversial pipeline, bringing natural gas to Europe from Russia, bypassing Ukraine and Poland, is soon expected to be fully operational and could resolve some of the region’s supply problems.

This deficit is “making the market nervous as we approach winter,” Stefan Konstantinov, senior analyst at ICIS Energy, a commodity intelligence service, told CNBC. “That is coupled with the very significant competition for LNG supplies from Asia and South America, which is driving gas prices up.”

Climate crisis concerns

Earlier this month, soaring gas prices and low wind output prompted the U.K. to fire up an old coal power plant to meet its electricity needs.

The move raises serious questions about the government’s environmental commitments amid the climate crisis. To be sure, coal is the most carbon-intensive fossil fuel in terms of emissions and therefore the most important target for replacement in the proposed pivot to renewable alternatives.

When asked how the U.K.’s decision to turn to coal could possibly be squared with the urgent need to dramatically scale down fossil fuel use, Konstantinov replied: “It’s a bit ironic isn’t it?”

Activists march with flags and placards, during the march at Extinction Rebellion’s Nature Protest held in Central London about how nature is in crisis.

Loredana Sangiuliano | SOPA Images | LightRocket | Getty Images

“If there was enough wind, it could maybe meet more than half or two-thirds of U.K. power demand on a relatively low power demand day. But instead what we are seeing is that actually we’ve got no wind and we are forced to fire up polluting coal-fired generation.”

“At first glance, that doesn’t tally up with the government’s ambition to decarbonize. But this is very much driven by the intermittent nature of renewables: both wind and solar,” he added.

The U.K. has committed to phasing out coal power completely by Oct. 2024 to cut carbon emissions.

“The fundamental drivers, i.e. high gas prices and high carbon prices, we at ICIS believe they are here to stay for the coming months,” Konstantinov said.

Analysts at Wood Mackenzie, a global natural resources consultancy, also expect U.K. and European gas prices “to remain elevated at current levels throughout winter.”

“A recovery in UK gas production is critical for this winter,” they added. “And going forward, investment into domestic gas supply remains crucial to ensure a smooth energy transition to renewables and new technologies.”

Environment

bp pulse cranks up DC fast charging with Arizona debut

Published

2 hours ago

December 10, 2025

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bp pulse cranks up DC fast charging with Arizona debut

bp pulse fast charging Arizona — Photo: bp pulse

bp pulse is continuing to roll out public DC fast charging across the US, and the company has opened its first-ever site in Arizona, along with new fast-charging locations in Texas, Florida, and Ohio.

In Arizona, bp pulse’s first site is now online at the Petro Travel Center in Eloy, just off Interstate 10 at Exit 200 (pictured). The location features 16 charging bays delivering up to 400 kilowatts, with both CCS and NACS connectors available. While charging, drivers can take advantage of the travel center’s onsite diner, convenience store, ATM, barber shop, and restrooms.

In South Florida, bp pulse’s new fast-charging site is at 2400 Miami Road in Fort Lauderdale, about three miles from Fort Lauderdale–Hollywood International Airport. The site features 16 charging bays, offering a mix of 150 kW and 400 kW speeds, with both CCS and NACS connectors. Its proximity to the airport makes it a handy stop for ride-hail drivers, EV rental returns, and airport pickups and drop-offs, with hotels, restaurants, and convenience stores nearby.

Texas is also getting more high-power charging, with a new bp pulse site at the Petro Travel Center in El Paso, located off Interstate 10 at Exit 37. This location offers 12 charging bays capable of delivering up to 400 kW, again with both CCS and NACS connectors. Drivers can take advantage of the diner, convenience store, barber shop, and restrooms while they charge.

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In Ohio, bp pulse has opened a smaller but still high-powered site at a TravelCenters of America location in Hebron, just off Interstate 70 at Exit 126. The site includes six 400 kW charging bays with CCS and NACS connectors, along with access to a convenience store, fast-food options, and restrooms.

These openings are part of bp pulse’s broader plan to build out EV charging across bp’s retail footprint, including bp, Amoco, ampm, Thorntons, and TravelCenters of America locations. Many of those sites are designed to combine fast charging with food, restrooms, and other travel amenities. bp has also said it plans to begin adding EV chargers at Waffle House locations starting in 2026.

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Environment

Cadillac Lyriq, Chevy Blazer EV had some of the biggest lease price drops in December

Published

3 hours ago

December 10, 2025

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Cadillac Lyriq, Chevy Blazer EV had some of the biggest lease price drops in December

The Cadillac Lyriq and Chevy Blazer EV were among the vehicles that saw the biggest lease price drops in December.

Cadillac and Chevy EV lease prices drop in December

With the $7,500 federal EV tax credit now gone, automakers are filling the gap with their own incentives. Some are passing on the savings as bonus cash, conquest cash, lease discounts, and more.

Two General Motors electric SUVs, the Chevy Blazer EV and the Cadillac Lyriq, had some of the largest lease price drops of any vehicle in December.

The 2026 Cadillac Lyriq AWD Luxury model is now listed at $439 per month for 24 months. With $4,979 due at signing, the effective rate is $646, or $28 less per month than in November.

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That’s after the Lyriq already saw prices drop by $115 a month from October. However, the December deal includes a $2,000 competitive bonus for owners and lessees of a 2011 model year or newer non-GM vehicle.

The 2026 Chevy Blazer EV FWD LT is now available to lease for as low as $319 a month for 24 months. With $6,039 due at signing, the effective rate is $571 per month, about $60 less than in November. The deal includes a $750 competitive bonus and $1,000 customer cash allowance.

Chevy and Cadillac are offering discounts across their entire EV lineup. All 2025 Chevy electric vehicles, including the Blazer EV, Equinox EV, and Silverado EV, are available with 0% APR financing for 60 months.

Intestingly, the 2026 Chevy Equinox EV is also available with 0% APR financing, while the 2026 Blazer EV is listed with 1.9% APR for 36 months.

Cadillac is offering a $2,000 conquest or loyalty bonus for the 2026 Cadillac Vistiq and select 2025/2026 Optiq and Lyriq models, plus 2.9% APR for 60 months.

The 2026 Cadillac Optiq is available to lease for as low as $319 per month for 24 months, while the 2026 Vistiq is available to lease for $619 per month for 24 months.

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Environment

EV incentives climb as prices soften heading into late 2025

Published

4 hours ago

December 10, 2025

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EV incentives climb as prices soften heading into late 2025

Electric vehicle prices edged lower and incentives jumped in November, but the month still saw a sales slowdown as the US EV market continues to hunt for a new normal.

Initial estimates from Kelley Blue Book show that EV sales came in at just over 70,000 units in November, more than 40% lower than a year ago and about 5% below October’s level.

The average transaction price (ATP) for a new EV in November was $58,638. That’s up 3.7% year-over-year but down 0.8% from October. Incentives told a different story: Discounts averaged 13.3% of ATP, which is lower than in November 2024 but jumped 20.1% compared to October.

Tesla continued to feel the pressure. The automaker’s ATP was $54,310 in November – down 1.7% from the same period a year ago but up 1.5% month-over-month. Sales declined for the second straight month and were down 22.7% year-over-year, mainly because of a drop in Model 3 demand.

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Model 3 sales slid 42.1% compared to November 2024 and fell 11.9% from October. Meanwhile, the Model Y, still the best‑selling EV in the US, saw prices increase 0.9% year-over-year and month-over-month. Model Y sales were slightly lower than last November, down 0.5%, but rose 2.5% compared to October.

The Tesla Cybertruck showed signs of cooling. Once the best‑selling vehicle priced above $100,000, Cybertruck sales fell to 1,194 units in November, the lowest monthly total of 2025 so far. Its average price was $94,254, higher both year-over-year and compared to October.

Taken together, the numbers paint a picture of an EV market in transition: prices are easing, incentives are rising, but buyers are still holding back as the industry tries to settle into its next phase.

Cox Automotive executive analyst Erin Keating said, “It’s important to remember that the KBB ATP is a measure of what is bought, not what is available. Nearly half of new-vehicle buyers are over the age of 55 and in their peak earning years. These buyers are more likely shopping for a high-end SUV, not something cheap and cheerful. In November, the over-$75,000 price point saw more volume than under-$30,000.”

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