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In a world where energy markets are shaped by unpredictability, 2024 offered valuable lessons on resilience and strategic planning. As we step into 2025, we dive into the key market movements, challenges, and opportunities that lie ahead, equipping businesses with insights to turn volatility into value and take decisive strides towards a more sustainable future.
2024 Market Overview
Despite geopolitical tensions and a complex global backdrop, 2024 reminded us of the resilience and potential of markets—especially in the United States. The FTSE 100 climbed an impressive 7%, while the Dow Jones hit an all-time high of 45,000 points, a 13% surge powered by easing inflation, interest rate cuts, and a wave of "AI euphoria" energising the technology sector. Meanwhile, Continental Europe faced a slower pace, with manufacturing struggles holding back broader economic growth, leaving energy demand steady rather than surging.
In the UK, optimism gave way to caution as the Autumn Budget deepened consumer and business concerns, casting a shadow over economic prospects. However, the right strategies can still turn this uncertainty into opportunity.
Gas and Power Market Overview
The winter of 2023-2024 brought warm, windy weather across Europe, lifting gas storage levels to record highs by February’s end. This abundance drove prices down, with Summer 2025 gas dropping to 65.00 pence per therm (ppt) and power to £60.00/MWh.
But as we’ve learned, energy markets rarely rest. By January 2025, a mix of geopolitical disruptions—cessation of Russian gas via Ukraine, Middle Eastern tensions, and extreme heatwaves reducing LNG supply—pushed prices higher. Add a cold wave sweeping Europe, and the energy picture shifted sharply, with gas at 120.00 ppt and power soaring to £91.00/MWh.
2025 Outlook
The year ahead promises further twists, with volatility likely to dominate. European gas storage levels, the Russian-Ukraine gas impasse, and ongoing geopolitical shifts will be critical indicators. Yet, for businesses that embrace strategic foresight, this volatile environment offers moments of value.
Beyond 2025, a weaker European economy and anticipated LNG production increases should ease pressure, stabilising markets in the long term - barring unforeseen disruptions from hotspots like the Middle East.
Conclusion
If 2024 taught us anything, it’s the need to plan for the unexpected. Today’s prices represent a chance to secure long-term value, whether you’re locking in contracts or hedging against potential spikes. These moves aren’t just about risk management, they’re about creating stability in an unpredictable market.
With tools like the True platform, decision-makers have the clarity to act decisively. By uniting data, insights, and expertise, businesses can harness today’s conditions to mitigate risks, identify savings, and invest confidently in sustainability. True doesn’t just help you weather the storm, it positions you to lead in the brighter, greener future that follows.
Energy markets may be shaped by "unknown unknowns," but the right strategy transforms uncertainty into opportunity. The road ahead isn’t just about navigating challenges, it’s about leading change, building resilience, and capturing value for a sustainable future. Let’s make 2025 the year your business becomes a Net Zero hero.
UK Gas (NBP) - Rolling 12 Month Average
