The cost of electric power in Europe is soaring. After a steady rise in 2021, prices spiked in the first half of 2022 following the post-COVID-19 economic recovery. Day-ahead wholesale electricity prices increased more than threefold on average in 2021 compared to 2020, reaching an average of €194 per megawatthour (MWh) in the fourth quarter (Q4) of 2021. The daily standard deviation of day-ahead electricity prices more than doubled on average in 2021 compared to 2020. At the start of July 2022, electricity prices were heading toward their 2021 peak. They are expected to reach new highs based on current market dynamics. Here, we discuss the drivers and implications of current European electricity prices.