According to the latest annual report by Ember for 2024, the European Union has made significant strides in transitioning from fossil fuels to clean energy sources. The main takeaway from the comprehensive report is that solar energy has, for the first time, surpassed coal and emerged as a key driver in reducing fossil-based electricity generation. Below are the data and an overview of key insights and figures from the Ember analysis.
Solar Energy on the Rise
The EU’s solar capacity reached 338 GW in 2024, almost tripling since 2019, when capacity was at 120 GW. Despite slightly weaker solar radiation compared to the previous year, solar energy production increased by 22 percent, thanks to a record-breaking annual installation of 66 GW. This rapid expansion boosted solar’s share to 11 percent of the EU’s total electricity generation, surpassing coal (9.8 percent) for the first time.
Wind Power Remains the Second Leading Energy Source
Wind energy maintained a stable share of 17 percent in total electricity production. Although installed capacity increased (from 169 GW in 2019 to 231 GW in 2024), less favorable wind conditions limited production growth, with Spain and Germany experiencing a notable shortage of wind in 2024. Nevertheless, wind has retained its position as the second-largest contributor to the European energy mix, solidifying its lead over gas, which has fallen to third place.
Renewable Sources Exceed 47 percent Share
The combined contribution of wind and solar reached a record-high 29 percent of the EU’s energy mix. When combined with hydropower and nuclear energy, clean energy sources now account for 71 percent of the EU’s total energy mix. Hydropower saw a 10 percent increase in production, partly due to above-average rainfall in much of Europe. Nuclear energy, whose capacity dropped from 110 GW to 96 GW over the past five years, recorded a 5 percent growth compared to 2023, primarily due to fewer outages in French reactors. Additionally, there appears to be growing interest in expanding nuclear reactor capacity.
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Fossil Energy at a Historic Low
Fossil-based electricity generation has fallen to its lowest level in over 40 years. Compared to 2023, there was a 9 percent decline in fossil energy production, despite a slight increase in electricity demand and higher electricity exports outside the EU. Emissions from the power sector dropped by 9 percent (585 million tons of COâ‚‚), less than half the level recorded in 2007.
Coal Decline
Coal now accounts for 9.8 percent of the European energy mix, according to Ember’s report, representing a 16 percent decrease compared to the previous year. Sixteen out of 17 coal-using countries reduced coal consumption, with significant reductions in Germany and Poland. Several countries, including Austria, Sweden, and Portugal, have already phased out coal entirely, while others plan to do so in the coming years. Ember estimates that by 2030, only seven EU member states will still use coal, leading to the closure of at least 34 GW out of the remaining 101 GW of operational coal capacity.
Gas Production Decline and Russian Imports
Gas production marked its fifth consecutive year of decline, falling to 16 percent in 2024. Most EU countries reduced gas usage, including major consumers like Italy (-2 percent), Spain (-19 percent), and the Netherlands (-5 percent). This trend has led to a 20 percent reduction in overall EU gas demand over the past five years, with about one-third of this decline attributed to the power sector. While imports of Russian gas persist, they have decreased, whereas LNG imports have risen, now accounting for 38 percent of total gas supplies, up from the previous 22 percent.
Five-Year Impact of the European Green Deal
Between 2019 and 2024, wind and solar expanded their share of electricity generation from 17 percent to 29 percent, preventing the burning of approximately 460 million tons of CO₂. Simultaneously, coal’s share dropped significantly—from 16 percent to below 10 percent—while gas fell from 20 percent to 16 percent, losing its second-place spot in the energy mix.
Challenges and Costs in the Wind Energy Sector
While solar energy continues its rapid growth, the wind energy sector faces slower development, partly due to macroeconomic conditions, rising material costs, and supply chain issues. The cost of building wind farms has increased by about 10 percent since 2021, although this growth slowed in 2024. Interest rates for energy investments have also risen but are lower than in previous years. Offshore wind, on the other hand, continues to innovate and maintain cost reductions thanks to higher efficiency and technological advancements. Recently, we reported on a major offshore wind project in Poland, which is beginning to develop this sector. Additionally, the U.S.’s announcement of withdrawal from the Paris Agreement and the temporary suspension of permits for wind projects may potentially impact future steps.
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