A combination of grid bottlenecks, permitting delays and flexibility limitations is slowing the growth of solar PV and wind as a share of Europe’s energy mix, according to a report from the European Climate Neutrality Observatory (ECNO).
The think-tank’s annual flagship report, which tracks Europe’s progress towards climate neutrality, said the share of variable renewables in Europe stood at 30% in 2025, but had risen “far too slowly” since 2020 to achieve the EU’s benchmark of reaching 58% by 2030.
Try Premium for just $1
- Full premium access for the first month at only $1
- Converts to an annual rate after 30 days unless cancelled
- Cancel anytime during the trial period
Premium Benefits
- Expert industry analysis and interviews
- Digital access to PV Tech Power journal
- Exclusive event discounts
Or get the full Premium subscription right away
Or continue reading this article for free
Although in absolute terms, combined wind and solar additions were on track, with around 70GW added in 2024, the report said this growth was skewed towards solar at 57.5GW. Wind deployments in 2024 were around 2GW lower than in 2023, and because wind has a higher capacity factor than PV – meaning it produces more electricity for the same amount of installed capacity – this slowdown led to a disproportionately lower overall electricity generation from renewables.
ECNO identified several factors that explain this sluggish growth. Grid investment, battery storage and smart meter rollout all remain insufficient, it said, while faster permitting, more integrated grid planning and stronger incentives for non-fossil flexibility are needed to scale up renewables to the levels required.
For example, it said that although grid investment has steadily increased between 2020 and 2025, progress remains “too slow”; for the distribution grid alone, a 12% to 25% yearly increase is needed, the report said.
And although on the supply side, battery storage capacity has been increasing, it remains below what the European Commission has said is needed by 2030.
Meanwhile, policies at the EU and member-state levels have been piecemeal in supporting progress on renewables. Some EU-level policy packages, such as the Net Zero Industries Act (NZIA) have been helpful in providing an “important framework” for renewables, on other fronts, policy has been less helpful.
For example, on grids, ECNO said the EU framework “remains fragmented across EU, national regulatory and Member State competences, with financing and planning decisions largely in the hands of Member States”.
“Recent EU guidance and legislative proposals on faster procedures for grids and storage, as well as tariff design that incentivises efficient grid use and end-user flexibility, are therefore important but not yet enough,” the report added.
With this in mind, the report said a white paper planned this year on electricity market integration would be “important for advancing EU market integration, improving the integration of renewables and flexibility, and reducing system costs”.
At the same time, it said Member States need to “urgently align grid planning with renewable deployment, accelerate permitting and invest in transmission and distribution”.
As the clean technology transition accelerates, another risk identified in the report is the EU’s growing dependency on China for critical raw materials, battery components, solar inverters and “other key manufacturing inputs”.
“These overlapping dependencies highlight a structural challenge: Europe’s long-term economic resilience and competitiveness depend on reducing fossil fuel imports, diversifying key supply chains and accelerating the transition to a climate-neutral economy,” the report said, adding that the risk was one the EU has begun to act on.
