In 2024, solar energy surpassed coal in the EU, with renewables now generating nearly half of the region’s electricity. Natural gas production has declined for five years, contributing to a record low in fossil fuel generation. Despite this progress, the EU remains a major greenhouse gas emitter. Challenges persist, particularly regarding the Green Deal, necessitating an increase in wind energy capacity and enhanced energy system flexibility to fully utilize renewable resources while managing price fluctuations.
In a historic shift, solar energy has overtaken coal for the first time within the European Union in 2024, enabling renewable energy sources to account for almost half of the electricity produced across the 27 member states, as reported in a recent analysis released on Thursday.
Concurrently, natural gas production has declined for the fifth consecutive year, leading to a record low in overall fossil fuel electricity generation, according to the think tank Ember in their “European Electricity Review.”
“Fossil fuels are losing their grip on EU energy,” states Dr. Chris Rosslowe, the report’s lead author. “When the Green Deal for Europe was initiated in 2019, few anticipated that the energy transition would progress to this point: wind and solar energy are diminishing coal’s role and pushing gas into a structural decline.”
The rapid expansion of solar energy, along with a resurgence in hydropower, has resulted in renewables comprising 47% of the electricity output in the EU, in stark contrast to the 29% generated by fossil fuels.
For context, while renewables made up 21.4% of electricity production in the United States and 30.2% in China in 2022, the UK saw renewables represent 45% of its electricity generation, according to the International Energy Agency (IEA) and a study by Carbon Brief, respectively.
Despite these significant advancements, the EU remains the fourth largest greenhouse gas emitter globally, underscoring the need for continued progress.
“The remarkable growth of solar energy since 2019 has enabled the EU to avoid spending 59 billion euros on fossil fuel imports,” Chris Rosslowe remarked to AFP. “If not for the surge in wind and solar energy, the EU would have incurred substantial expenses on fossil fuels for electricity generation.”
These positive trends in renewable energy are evident across the EU, with solar energy making strides in all member states. More than half of the countries have either phased out coal, the most polluting fossil fuel, or reduced its contribution to less than 5% of their energy mix.
Challenges and Opportunities in Renewable Energy
However, challenges persist for renewable energy initiatives in Europe, particularly as certain aspects of the Green Deal face increasing scrutiny. In the United States, former President Donald Trump has enacted measures that hinder the development of new wind energy projects.
Yet, Chris Rosslowe warns, “We must accelerate efforts, especially in the wind sector,” emphasizing that capacity needs to more than double by 2030.
To fully capitalize on the potential of renewable energies, the European electricity system must enhance its flexibility and storage capabilities, given the intermittent nature of these energy sources.
The abundance of solar energy in 2024 has led to price reductions during midday, and in some instances, resulted in “negative prices” where electricity is sold below zero due to an oversupply. These occurrences accounted for an average of 4% of hours in the EU, up from 2% in 2023, and were observed across nearly all member states.
According to Ember, these price fluctuations could enable consumers to lower their electricity bills by shifting demand to times of high solar production. Additionally, electricity suppliers could store surplus energy generated during peak production and distribute it as demand increases.
The deployment of battery storage has seen significant advancements, with installed capacity reaching 16 GW in 2023, a considerable increase from 8 GW in 2022. However, these capacities are predominantly located in a few countries, with 70% situated in Germany and Italy by the end of 2023.
“We now require greater flexibility to ensure the energy system adapts to new realities: increased storage and smarter electrification in heating, transportation, and industry,” stated Walburga Hemetsberger, CEO of SolarPower Europe, as quoted by Ember.
Jacopo Tosoni from the European Association for Energy Storage (EASE) added, “The competitiveness of the EU is closely tied to the swift deployment of clean energies and flexible solutions. Renewables and storage are becoming the foundational pillars of the energy transition.”