In recent years, energy prices have become a central variable for industry, thermal networks and, more broadly, for any heat decarbonisation strategy. In this context, a simple but very useful indicator for interpreting market trends is the electricity to gas price ratio, meaning the relationship between electricity and natural gas prices expressed in the same energy unit.
This ratio does not replace a full techno economic assessment, but it does help answer a very practical question: in which contexts can heat electrification, for example through heat pumps, be more attractive than gas based solutions.
What the electricity to gas ratio means
In simple terms, the ratio is defined as:
ratio = electricity price / gas price
If the ratio increases, electricity is relatively more expensive than gas. If it decreases, electricity becomes relatively more competitive.
The key point is that this indicator should be read alongside technology performance. For a heat pump (HP), the cost of useful heat depends on the electricity price, but also on its COP. Therefore, the higher the electricity to gas ratio, the higher the performance required from an electric technology to compete economically with a conventional solution.
Even so, it is best seen as a first contextual signal rather than a final decision: the ratio does not account for investment, operation and maintenance, integration constraints, waste heat availability or regulatory frameworks. That is why it works best when combined with technical results and more detailed analyses, helping to steer innovation, exploitation and transfer strategies without losing sight of market reality.
How the data were collected
For this analysis, electricity and gas price data were collected for different European countries, using Eurostat1 mainly as the reference source for the historical series and for 2025. Based on these inputs, both prices were harmonised into the same energy unit to calculate the ratio consistently.
In this type of exercise, it is important to be clear that the outcome depends on several assumptions: customer category, treatment of taxes, consumption band, and the availability of national data. In some cases, particularly for countries outside Eurostat’s1 standard coverage, it may be necessary to use complementary national sources.
A first look, the 2025 European map
A very intuitive way to represent the ratio is through a European map. Figure 1 shows the distribution of the electricity to gas ratio for 2025.
Fig 1. European map of the electricity to gas ratio in 2025
The first takeaway is clear: Europe does not behave uniformly. Some countries show relatively low ratios, especially in the Nordic region, while others show significantly higher ratios, such as the United Kingdom and some countries in southern and eastern Europe.
The European Union average in 2025 is around 2.96, which already provides a useful reference for interpreting each country’s relative position. Countries such as Sweden or Finland show clearly lower values, suggesting a more favourable environment for electrification. By contrast, high values such as those observed in the United Kingdom, Italy or Greece indicate that, in those contexts, the economic competitiveness of electric solutions depends even more on achieving high performance.
A table to see the evolution in more detail
While Figure 1 provides a global snapshot, the time evolution tells another part of the story. For this reason, Table 1 includes five country cases with very different profiles, plus the European Union average; it covers 2007, 2015, 2025 and a simple extension of the trend to 2035.
Figura 2. Evolution of the electricity to gas ratio in Sweden, France, Spain, Germany and the United Kingdom for 2007, 2015, 2025 and 2035.
In the table, the green shading marks cases where, assuming an average HP COP of 3 and a gas boiler efficiency of 0.9, the price context is more favourable for an HP than for a gas boiler, meaning the electricity to gas ratio is less than or equal to 3/0.9, approximately 3.33, without considering investment or operation.
What trends emerge from the results
Several interesting observations can be drawn from the historical series. First, the ratio has not been stable over time. The evolution between 2007 and 2025 shows significant volatility, confirming that market context can change substantially and directly affect the economic viability of electrified technologies.
Second, the 2025 map confirms strong regional differentiation. Northern Europe generally shows lower ratios, while other countries exhibit more strained relationships between electricity and gas prices. This means the same technological solution does not start from the same economic baseline across countries.
Third, cross country comparison makes it clear that the ratio can be used as a quick reading tool to identify where certain solutions, such as industrial heat pumps, could find a more favourable market entry point.
Finally, the 2035 value should not be interpreted as a prediction. It is a simple extension of the trend observed in the historical series, included only to facilitate reading and to open a discussion on possible trajectories. It can still be useful to explore how market conditions might evolve and what that could imply for the future exploitation of clean heat technologies.
Link to PUSH2HEAT, why this matters for the project
Within PUSH2HEAT, CARTIF is working on the analysis and preparation of exploitation routes and adoption pathways for heat decarbonisation solutions, with a clear focus on industrial contexts and on bringing technologies to market with realistic criteria.
One of the project’s goals is that solutions do not remain as “something that works”, but that they make sense in real world scenarios, with market signals, operational constraints and replicability needs. In that framework, the electricity to gas ratio is a simple but very practical piece to contextualise opportunities by region, and to support exploitation messages with a quantitative basis that is easy to communicate.
In the vast universe of energy technology, lithium-ion batteries have reignes supreme for decades. From our mobile phones to electric vehicles, these batteries have been the silent engine that drives our daily lives. But, like any technology, lithium also has its limitations and challenges. What comes next? Join us as we explore the batteries of the future and the alternatives to lithium that could transform the world.
Why look for alternatives to lithium?
Lithium has numerous advantages, but it also presents significant challenges. Lithium can be environmentally costly to extract, and growing demand is putting pressure on global supplies. In addition, lithium batteries, while efficient, have limitations in terms of storage capacity and safety. So what options do we have?
Battery breakthroughs: overcoming challenges for a sustainable energy future
In the search for more affordable and abundant alternatives to lithium-ion batteries, sodium-ion batteries are emerging as a promising option by using sodium instead of lithium as the active ion. Although they do not currently achieve the same energy density as lithium batteries, sodium-ion batteries offer significant advantages in safety and sustainability by using more abundant and less expensive materials. In addition, solid-state batteries represent another innovation by replacing liquid electrolyte with solid electrolyte, improving safety and potentially energy efficiency with higher energy densities and faster charge times, making them ideal for applications in electric vehicles and portable devices. Finally, graphene, known for its ultra-thin and tough structure, is revolutionising energy storage with promises of ultra-fast charge times and long lifetimes, promoting significant advances in consumer electronics and industries, and paving the way for a new generation of more efficient and durable devices.
Beyond batteries: exploring new frontiers in energy storage
While electric batteries have been the mainstay of modern energy storage, relying only on one technology isn´t enough to meet the energy challenges of the future. Diversification of storage sources is essential to create a robust and resilient energy system. In addition to electric batteries, exploring options such as thermal storage and other innovative methods will allow us to make better use of renewable energy, optimise energy efficiency and ensure a constant and reliable supply.
Let´s discover some of these fascinanting alternatives!
Can abundant natural resources be harnessed for energy storage? Air and water prove it!
Compressed air storage (CAES) uses underground caverns or tanks to compress air at high pressure during periods of low electric demand. When electricity is required, the compressed air is expanded to generate power efficiently through turbines, which is crucial for stabilising power grids in areas where topography doesn´t allow for reservoirs. Hidraulic storage, on the other hand, harnesses reservoirs and dams to store and release water on demand, providing stability to the electricity system and facilitating the integration of intermitent renewable enrgies towards a more sustainable and stable future.
Energy revolution: how we cover the peaks of demand with advance technology
In the vibrant world of energy, one of the biggest challenges is managing those times when energy consumption spikes unexpectedly. How do we ensure that our power grid holds up without blackouts?
An alternative can be flywheels, which are notable for their ability to store kinetic energy in a rotating disc and release it almost instantly. But they aren´t the only heroes in this scneario. Supercapacitors, with their ability to charge and discharge energy at breakneck speeds, also play a crucial role in providing a boost of energy when it is needed most.
By integrating these technologies, which are capable of providing large power peaks in short periods of time, with other storage or generation systems, remarkable stability is achieved in electricity grids. This is especially beneficial for small or medium-sized grids that intend to operate in isolation, ensuring a reliable and constant power supply.
Phase change materials (PCM): heat under control and thermal change materials (TCM): efficient storage
Phase change materials (PCM) are substances that store and release large amounts of thermal energy during their melting and solidification process. These materials can be used for applications such as building air conditioning, improving energy efficiency and reducing the need for heating and cooling systems.
Similar to PCM, thermal change material (TCM) store thermal energy, but with different mechanisms, such as absorbing and realeasing heat through chemical reactions. The TCM can be used in thermal energy storage systems for solar power plants, increasing efficiency and storage capacity.
Storage and transport: ammonia and hydrogen. Integrated solutions
Ammonia is emerging as a promising energy carrier. It can be used as fuel directly or as a storage medium for hydrogen. As a liquid at moderate temperature and pressure, it is easier to store and transport than pure hydrogen. Moreover, it can be produced sustainably using renewable energies.
Hydrogen is considered by many to be the fuel of the future. It can be produced from water using renewable energy, stored and then converted back into electricity using fuel cells. In addition, it has thermal and mobility apllications. However, the challenge remains the infrastructure for its efficient and safe production, storage and distribution.
The future of batteries and energy storage is brilliant
The race for the next generation of energy storage technologies is in full swing. With so many promising options on the horizon, the future of portable energy and storage looks brighter than ever. From sodium and graphene to innovative phase-change materials and hydrogen, we are on the verge of an energy revolution.
At CARTIF, we excel with innovative projects that explore advanced solutions for energy storage, such as THUMBS UPand SINNOGENES, among others. These projects reflect our strong commitment to research and development of sustainable technologies that are set to transform the global energy landscape. Keep up to date with the latest news by visiting our blog and website to follow these exciting developments.
