Build-out of solar and wind power has accelerated Europe’s energy transition

WHAT: The EU saw solar power surpass coal as a source of power for the first time in 2024.

WHY: Falling costs of solar panels helped the EU install a record amount, which enabled the bloc members to source 11% of its energy needs from solar despite the continent experiencing less sunshine in 2024.

WHAT NEXT: The EU finds itself in a good position, with the bloc on a trajectory to hit its target of 400 GW of installed solar capacity by 2050, and it is within striking distance of meeting its 2030 target of 750 GW.

 

The EU reached a key milestone in 2024 as solar power surpassed coal use for the first time in the bloc’s history, a report published on January 23 by climate think-tank Ember revealed.

According to Ember’s data, solar panels generated 11% of EU member states’ electricity last year, nudging ahead of coal, which was responsible for providing 10% of the EU’s energy mix.

Wind power also saw an increase in power generation in Europe in 2024, climbing to provide 18% of the bloc’s energy mix. Altogether, renewables were responsible for 47% of the bloc’s power generation last year, with hydropower and nuclear also experiencing growth.

Correspondingly, fossil fuel use slumped for a fifth year in a row in 2024, dipping to 16% as the EU’s energy transition continues to gain pace.

Indeed, for coal in particular, it has been a steep decline since the EU reached peak coal in 2003. Since this time, coal use has plummeted by almost 70%.

EU politicians have stuck to their word to phase out coal use. Of the 17 countries in the 26-member bloc, 16 saw their share of coal use decrease last year.

Additionally, half of the bloc’s members now either use no coal power at all or the share of coal in their power mix is less than 5%, putting these countries in a strong position to quit coal completely.

Moreover, the two biggest users of coal, Germany and Poland, both saw significant declines in coal use in 2024. Germany experienced a 17% year-on-year dip, while Poland recorded an 8% fall in coal use compared to 2023.

The increase in solar generation in Europe in 2024 was spurred by a record build-out of solar panels. With prices dipping and ample supply available, without any supply chain challenges or geopolitical tensions clouding their purchase, solar panel installation boomed last year.

Encouragingly, despite less sunshine in Europe last year compared to 2023, the EU was still able to generate more energy from solar power as a result of the record build-out of solar installations.

Innovative approaches to solar generation have also been playing a key role. For instance, Germany has embraced solar installation on balconies. Likewise, EU leaders have championed agri-PV, installing solar panels either next to or above crops.

This new approach has bolstered land efficiency and provided a dual solution to climate change and food production for one of the world's most densely populated regions.

However, there is still more room for growth and solar power can be further tapped with the rollout of more battery storage. Modernising grids could also ensure solar generation is maximised.

On the other hand, external factors have also helped accelerate the EU’s energy transition. For instance, Russia’s invasion of Ukraine and Europe’s subsequent pivot away from Russian pipeline gas have catalysed the uptake of renewables to fill the supply deficit.

And as the US signals a shift back towards fossil fuels with Donald Trump returning to the White House and his vows to “Drill, baby, drill” as well as his withdrawal of the US from the Paris Agreement, Europe looks set to assume a leadership position in the renewables sector.

Indeed, policy support by European leaders has been a key factor in turbocharging the shift to renewables in the EU. Announced in 2019, Europe’s Green Deal has removed red tape and bottlenecks to streamline the permitting process for new solar projects.

Moreover, the Green Deal has also attracted capital to the bloc’s renewables sector by incentivizing investment in solar infrastructure. In just five years since the Green Deal was announced, fossil fuel’s share of the EU’s energy mix has fallen from 39% to 29%.

It is also encouraging that the EU’s lofty goal to achieve net-zero greenhouse gas (GHG) emissions by 2050 is looking increasingly reachable. Ember’s report found that the bloc is on a trajectory to hit its goal of installing 400 GW of solar capacity by 2050, after reaching 338 GW at the end of 2024.

Looking ahead to the end of the decade, the EU again appears to be in a good position, with Ember judging that the bloc is “within reach” of its 2030 target to boast installed solar capacity of 750 GW.

Certainly, fossil fuels have dominated the headlines since Trump’s election victory. While Europe’s turbocharged solar installation may not be grabbing the front pages, the EU’s acceleration of solar generation has been nothing short of impressive and has put the bloc on sound footing to achieve its climate targets.