ENERGY CONTRACTS – 31/07/2026

Welcome to AYA’s energy market update for July 2026. This month: markets calm down but winter risks remain, and the EU Electrification Action Plan.

Energy markets calm down, but winter risks remain

Energy markets have become a little calmer after tensions in the Middle East eased. Oil prices fell as hopes grew that diplomatic talks could reduce the risk of further disruption. This also helped gas and electricity prices move down.

Even so, the overall picture has not changed.

Europe is still preparing for winter with lower gas storage levels than originally planned. Although businesses and households now use less gas than a few years ago, storage remains an important buffer during cold periods. During winter, the EU consumes more natural gas than what can be imported (gas from Norway + LNG from USA). So, in cold days, or if gas supplies are disrupted, prices will certainly rise again.

Another challenge is the global competition for liquefied natural gas (LNG). Asian countries are currently paying higher prices for EU-bound LNG cargoes. This makes it harder for Europe to attract enough supply and keeps pressure on the gas market.

Electricity prices remain closely linked to gas prices. France has improved the availability of its nuclear power plants, which supports electricity supply across Europe. Renewable generation also continues to grow. However, factors such as dry weather, lower hydro production and planned maintenance mean that electricity prices can still change quickly.

For energy-intensive companies, this means uncertainty is likely to remain part of the market. Prices may move up or down in response to weather, global events or changes in energy supply. Understanding these market drivers is becoming just as important as following the prices themselves.

At AYA, we help businesses look beyond short-term market movements. Together, we assess market developments, your energy needs and your risk profile to build a purchasing strategy that supports both cost control and long-term business goals.

‘Recent price drops are encouraging, but the market remains sensitive to changes in gas supply and geopolitical events.’
Baudouin Vervrangen, Energy Partner at AYA

If you would like to understand what current market developments mean for your business, your Energy Manager is ready to help.

ENERGY ROADMAP – 31/07/2026

Electrification is becoming a business strategy

The European Commission has published its Electrification Action Plan, setting out how electricity will play a much bigger role in Europe’s energy system over the coming years. The goal is to reduce dependence on fossil fuels, lower carbon emissions, and strengthen Europe’s energy security.

Today, electricity accounts for around 23% of Europe’s final energy use. The Commission wants this to increase to 32% by 2030 and to 46% by 2040.

To support this transition, Europe will need more renewable electricity, more battery storage, stronger electricity grids, and greater flexibility in the way energy is used.

For many businesses, electrification is already technically possible. Low- and medium-temperature industrial heating can increasingly be supplied by electric technologies such as heat pumps. At the same time, the Commission wants to speed up investment in batteries, energy storage and smart grids, so electricity can be used more efficiently.

The plan also recognises that there are still important challenges. In many countries, including Belgium, electricity remains much more expensive than gas. Grid connection delays can slow down investment, while finding skilled workers and installing new equipment also takes time. Several industry organisations have therefore welcomed the direction of the plan but questioned whether the targets can be achieved as quickly as proposed.

For energy-intensive companies, this means electrification should not be seen as a single investment, but as part of a broader energy strategy. Future decisions about production processes, grid capacity, renewable energy, storage and flexibility are becoming more closely connected.

At AYA, we help companies prepare for this transition. We assess future electricity demand, evaluate grid capacity, develop integrated energy plans and combine sourcing, flexibility and renewable energy into one practical strategy. This helps businesses reduce costs, lower emissions, and make well-informed investment decisions.

‘Electrification is no longer an environmental choice. It is becoming a strategic business decision that requires careful planning.’
Shahane Bakhshyan, Energy Manager at AYA

If you are considering electrification or want to understand how these new European policies could affect your business, your Energy Manager is ready to help.