Europe’s Power Market Reprices as Renewables Reshape Value: Pexapark
Falling capture rates and negative prices push capital toward flexibility
February 4, 2026
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Europe’s power system has entered a phase dominated by renewables, fundamentally changing price formation, risk allocation, and revenue stability. In 2025, renewables accounted for 47.8% of total EU electricity generation, with solar output exceeding 340 TWh, representing 12.6% of the power mix, according to Pexapark’s Renewables Market Outlook 2026.
