Electric Power, Coal, Natural Gas, LNG, Energy Transition, Thermal Coal, Carbon, Emissions
September 30, 2026
INFOGRAPHIC: Europe enters Q4 under cloud of high gas, power prices, supply woes
Editor:
HIGHLIGHTS
EU gas storage to reach only 74% by Nov 1
Wind volatility, low hydro to impact generation
Carbon prices rally on compliance demand in Q3
European gas and power prices have risen to highs not seen since 2022, with the fourth quarter set to test markets amid low gas storage and continued LNG supply disruptions due to the war in the Middle East.
For much of 2026, Europe has grappled with a tighter global LNG market; seven months into the Middle East conflict, those pressures are growing as winter looms.
Analysts at S&P Global Energy CERA project EU gas storage will be just 74% full by Nov. 1.
In power, the focus is on volatile wind and reduced hydro stocks, while nuclear is forecast to be little changed year over year.
Gas generation could see the largest year-over-year declines, despite limited potential for gas-to-coal/lignite switching following plant closures.
European carbon prices, meanwhile, rallied through the third quarter, carried higher by robust compliance demand. Heading into the fourth quarter, EU Emissions Trading System trilogue negotiations emerged as the dominant policy flashpoint for the carbon market.
