The EU is “rapidly” moving towards a clean energy future, but experts warn our “outdated” grid is holding us back.
Wind and solar generated more EU electricity than fossil fuels for the first time in 2025, marking a “major milestone” in the transition to clean power.
A new report from energy think tank Ember has found that renewable energy produced almost half of EU power last year, despite a drop in hydro power and increased use of gas. Wind and solar spearheaded the boom, accounting for a record 30 per cent of EU electricity and overtaking fossil fuels by just one per cent.
While experts have praised the “rapid” transition to renewable energy, experts warn the EU’s “outdated” grid is still holding back progress.
How clean is the EU’s electricity?
The report argues that coal is “nearly on its way out” after power generation fell to a historic low of 9.2 per cent. In 19 EU countries, coal power is now at less than five per cent of total electricity generation.
Over the past decade, reductions in coal haven’t been met with an equal increase in gas or other fossil fuels. However, gas generation in 2025 rose by eight per cent compared to 2024, largely due to reduced hydro output ( -12 per cent) blamed on the EU’s sunny weather and lack of rain.
This pushed the EU power sector’s gas import bill up to €32 billion, 16 per cent higher than the previous year. Analysts also found that price spikes during peak gas-use hours drove an annual increase in wholesale electricity prices across 21 EU member states.
Energy from wind also dropped by two per cent, but it remains the second-highest form of renewable generation. Again, this was attributed to early 2025 being less windy than early 2024.
Over the past five years, fossil power has declined from 36.7 per cent of the EU’s electricity to 29 per cent.
Which European countries are leading the renewable drive?
While wind and solar generated more electricity than fossil fuels in the EU overall, this was only the case for 14 of the 27 member states individually. For the first time, this included the Netherlands and Croatia.
Estonia, Bulgaria, Greece, Ireland, Slovenia, Latvia, Romania, Slovakia, Italy, Czechia, Poland, Cyprus and Malta all generated more electricity from fossil fuels than wind and solar. However, the report argues that Greece, Bulgaria and Slovenia are “very close” to reaching the tipping point thanks to strong growth in solar generation.
Sweden has long led the renewable drive, producing more power with solar and wind compared to fossil fuels since 2010. This milestone was achieved in Luxembourg in 2017, while Finland and Lithuania passed the tipping point in 2022.
Portugal, Spain, Austria, France and Belgium all generated more wind and solar power in 2023, while Hungary and Germany crossed the threshold in 2024.
“This milestone moment shows just how rapidly the EU is moving towards a power system backed by wind and solar,” says report author Dr Beatrice Petrovich.
“As fossil fuel dependencies feed instability on the global stage, the stakes of transitioning to clean energy are clearer than ever.”
Why solar is leading the green energy drive
Last year’s renewable energy boom has been attributed to a “staggering” increase in solar, with generation jumping by more than 20 per cent for the fourth consecutive year. EU solar generation reached 369 TWh in 2025, the same amount that global electricity demand increased to in the first half of the year.
Solar energy has long been touted as the “key driver” in moving away from fossil fuels due to being the world’s cheapest source of power. One study from the University of Surrey found that solar costs as little as €0.023 to produce one unit of power in the sunniest countries.
Even nations like the UK, which sits 50 degrees north of the equator and is known for its dreary weather, researchers found that solar was the cheapest option for “large-scale energy generation”.
Is the EU ready for green energy?
While the green energy boom is essential for lowering emissions and meeting climate targets, experts are concerned that the EU’s electricity grid is insufficient and outdated.
The grid, which carries electricity to homes and businesses, was never designed for solar and wind farms – which are often built in remote areas – and were first built around coal. These sites were later turned into gas-fuelled power stations, which are more centrally located.
In layman's terms, the EU doesn’t have an issue generating green power, but it does have a problem when it comes to moving that power around. For example, there were several times last year when Poland did not have the capacity to accommodate electricity produced by solar panels, meaning power ended up being wasted.
This isn’t just an issue for the EU. Over in the UK, total wasted wind costs have surpassed £3 billion (€3.44 billion). This works out at 24,643 MWh of green electrons: enough to power Scotland for a day.
Last year, EU energy commissioner Kadri Simpson warned that 2030 renewable targets will not be met if the grid infrastructure isn’t upgraded “very fast”. The European Commission says power grid investments of €584 billion per year are needed until 2030 to meet targets.
A 2025 report by energy research firm Aurora warned that Europe’s power grid is increasingly becoming the “bottleneck” to achieving Net Zero.
It found that congestion management costs in Europe neared €9 billion in 2024, while 72TWh of mainly renewable energy was curtailed (shut off) due to bottlenecks. This is roughly equivalent to Austria’s annual electricity consumption.
“As we integrate and interconnect, we must pay due attention to the capacity and complexity challenges to ensure a secure, affordable, and sustainable grid,” says Gerhard Salge of Hitachi Energy.
“The technologies are available; we now need to deploy them at speed and scale.”
