Europe’s electricity price premium

Deutsche Bank

Markus Müller, Daniel Sacco

Research

20 Pages

Deutsche Bank examines Europe’s structurally higher electricity costs as both a competitiveness threat and infrastructure opportunity. Energy-intensive sectors use 45% of EU industrial energy despite contributing under 4% of gross value added, while roughly EUR584 billion of grid investment is needed by 2030 to improve resilience.

Key Takeaways

Power premium persists: During the 2025 heatwave, German daily power prices rose as much as 175%, with peak prices exceeding EUR400/MWh.
Industry bears burden: Chemicals, metals, cement, and glass consume about 45% of EU industrial energy despite representing under 4% of gross value added.
Grid spending accelerates: Europe needs roughly EUR584 billion of grid investment by 2030, while cross-border transmission capacity is projected to expand over 100 GW by 2040.
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