“Fossil fuels are losing their grip on EU energy” as solar PV generation overtook coal-fired power in 2024, according to a new report.
The report from clean energy think tank Ember showed solar PV accounting for 11% of EU electricity while coal fell to historic lows of 10%. It also showed gas generation declining for the fifth consecutive year as the bloc’s overall fossil fuel consumption continues to decrease.
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Chris Rosslowe, senior analyst and lead author of the report, said: “At the start of the European Green Deal in 2019, few thought the EU’s energy transition could be where it is today; wind and solar are pushing coal to the margins and forcing gas into structural decline.”
Ember found that the EU has avoided €59 billion (US$61.4 billion) in coal and gas import spending since 2019 due to its growing renewable energy capacity. The report said that all renewables (solar, wind, hydropower, bioenergy) cumulatively accounted for 47.4% of the EU’s power generation in 2024.
While wind power generation (17%) continued to grow, solar PV was portrayed as the driving force behind Europe’s changing energy sector. Capacity additions reached 66GW in 2024, which Ember said was a 22% increase on 2023. Figures from trade body SolarPower Europe put the increase at just over 4%.
This growth was despite a significant slump in the residential solar sector after the energy crisis which followed the outbreak of war in Ukraine faded. January also saw shipments of Russian gas through Ukraine cease, a development for which the EU said it was largely prepared.
Challenges loom
Despite solar’s role in changing Europe’s energy mix, there are a growing challenges to the sector. The drop-off in residential installations across Europe reflects both a more “normal” energy market and consistently high inflation which has made investments in solar systems less attractive.
The same holds true for investment in large-scale projects. Though SolarPower Europe found that although the utility-scale sector grew considerably in 2024, inflation and the cost of capital have made large investments less attractive.
Shifting political ground in Europe also poses a threat to the continued rollout of renewable energy, following an increase in support for parties across the bloc that may row back on climate commitments. Geopolitical tensions and conflict also put pressure on renewable energy deployments and draw attention away from climate concerns. Two reports last October, from the International Energy Agency (IEA) and Norwegian consultancy DNV both identified financial and geopolitical challenges to the energy transition.
Rosslowe said: “While the EU’s electricity transition has moved faster than anyone expected in the last five years, further progress cannot be taken for granted.”
The report reads: “The strategic, economic and social case for the energy transition in Europe is clearer than ever. While the worst of the energy crisis might be over, Europe’s ongoing dependence on fossil energy leaves it vulnerable to global shocks in an increasingly volatile world.”
Solar Media will host its annual Solar Finance & Investment Europe event in London on 4-5 February 2025. This event annually attracts infrastructure funds, institutional investors, asset managers, banks and development platforms at the forefront of European renewables; the vast majority of which are responsible for billions in active and prospective investments in the Europe’s energy transition. For more details, visit the website.
