Europe Spared €40 Billion in Gas Costs — Yet Peak-Hour Prices Still Track Fossil Fuels

Solar installations across Europe avoided roughly €40 billion in gas import expenditure between March and mid-October, according to industry association SolarPower Europe. The calculations surfaced as European Council leaders held their October 15–16 summit, where the conclusions echoed the sector’s priorities.

The savings, however, have not resolved a deeper structural problem: when electricity demand peaks, gas-fired plants still determine the marginal price on the grid, leaving consumers facing elevated rates even when a significant share of supply comes from renewable sources. “Forty billion euros — that is the amount Europe did not have to spend,” said SolarPower Europe CEO Walburga Hemetsberger, while cautioning that the continent remains exposed to fossil fuel price swings.

Summit conclusions backed the sector’s diagnosis. Heads of state identified accelerated electrification, expanded grid infrastructure, and the deployment of storage as the most effective instruments for durably reducing energy costs, and called for coordinated measures to protect businesses and households from future price shocks.

Deputy head Dries Acke pointed to rooftop solar as a quick path to lower household bills and noted that batteries can reduce dependence on gas-fired generation during demand peaks. He also stressed the importance of fair taxation and predictable carbon pricing, with the next major debate expected to focus on electricity billing rules and revision of the EU Emissions Trading System.

Financing the transition remains a bottleneck. Four years after REPowerEU was launched, approximately 82% of the programme’s earmarked funds have yet to be drawn down.

Source: pv Europe