European hydropower generation fell to its lowest third-quarter level since 2015 after a summer of extreme heat and drought, raising concerns about electricity supply and prices heading into winter.
A report, by energy intelligence provider Montel, revealed Hydropower generation across Europe totalled just 84.8 TWh in Q3 2026, around 13% below the same period last year.
Although rainfall returned closer to normal levels in September, reservoir levels remain depleted across several major European power markets, raising concerns that hydropower availability could remain below seasonal norms until 2027.
Jean-Paul Harreman, Director at Montel Analytics, said: “I think of Europe’s hydropower reservoirs as the electricity sector’s savings account. There if needed, to be drawn down in an emergency. If hydropower operates like a savings account, then gas is more like a credit line. It can be topped up at any point, as long you are willing (and able) to pay.
“That’s why the real test this summer wasn’t about getting through any hot spell but reaching the autumn with something actually left in the bank. Repeated heatwaves and drought have emptied the account further since then. That’s why low reservoir levels worry me most right now.”
Montel says that a strengthening El Niño could influence European weather conditions during the coming winter, potentially affecting rainfall and temperatures – yet its impact on hydropower generation will depend on prolonged periods of above-average precipitation during autumn and winter.
Without sustained rainfall, Europe risks entering the coldest part of the year with reduced hydroelectric availability, increasing reliance on alternative energy sources.
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