The EU’s Clean Energy Transition Reaches a Tipping Point

With the release of The European Electricity Review 2025, we’re diving into the key findings that shape the future of energy in Europe. This report highlights record-breaking solar growth, the continued decline of fossil fuels, and the urgent need for more wind and grid flexibility. As the EU moves closer to a fossil-free electricity system, we explore what this progress means for businesses, policymakers, and Ireland’s energy future.

Solar’s Record Growth Signals a New Era

Solar power has emerged as the fastest-growing energy source in the EU, providing 11% of the region’s electricity in 2024—up 22% from the previous year. This unprecedented growth has been driven by:

• Record-breaking capacity additions: 66 GW of new solar installed in 2024 alone.
• Falling costs: Solar has become the cheapest source of electricity in many EU countries.
• Policy support: The European Green Deal and national renewable energy plans have accelerated solar uptake.

However, sustaining this momentum will require greater investment in clean energy flexibility—such as battery storage, grid expansion, and electrification. Without these measures, the full potential of solar power may not be realised.

Wind Power Faces Challenges but Remains Cost-Competitive

While wind remains the second-largest source of electricity in the EU, its growth has slowed due to supply chain disruptions, inflation, and permitting obstacles. In 2024, wind generation grew by just 7 TWh, far below the 30 TWh average of previous years.

Encouragingly, the outlook is improving:

• Turbine orders have increased, signalling a recovery in the sector.
• New policy reforms are accelerating permitting processes, reducing wait times from 6 years to just 2 in some countries.
• Offshore wind capacity is set to expand significantly, which will help bridge the gap between EU climate targets and actual deployment.

Despite recent setbacks, wind power remains highly competitive against fossil fuels, and its continued growth will be essential for meeting the EU’s long-term decarbonization goals.

Fossil Fuels in Decline: A Structural Shift

The decline of fossil fuels in the EU power sector is no longer just a temporary trend—it’s a structural transformation.

• Coal power has fallen to a historic low, now supplying just 10% of EU electricity.
• Gas power generation has declined for five years straight, contributing to a 20% drop in total EU gas consumption since 2019.
• Wind and solar have saved the EU €59 billion in fossil fuel import costs since the start of the Green Deal.

These changes are not just about reducing emissions—they are fundamentally reshaping Europe’s energy landscape. By reducing reliance on imported fossil fuels, the EU is also enhancing energy security and protecting consumers from volatile gas prices.

What Needs to Happen Next?

The European Electricity Review 2025 makes one thing clear: the EU’s electricity transition is moving faster than expected, but further acceleration is needed to meet 2030 and 2040 climate targets.

• Expand clean energy flexibility: Investments in battery storage, demand response, and electrification will be critical to integrating more renewables into the grid.
• Accelerate wind deployment: To stay on track with EU targets, wind growth must more than double. This requires streamlining permitting and improving auction designs to attract more investment.
• Strengthen policy commitments: National governments must update their renewable energy targets to reflect the rapid growth of wind and solar. Ambition alone is not enough—delivery must match expectations.

What Does This Mean for Ireland?

• Offshore wind will be key: Ireland has massive untapped offshore wind potential, but deployment has been slow due to permitting delays and infrastructure challenges. The government must fast-track grid connections and planning approvals to capitalise on this opportunity.
• Solar’s moment has arrived: Although solar power has played a smaller role in Ireland’s energy mix, 2024 saw record levels of new installations. Investment in rooftop solar, community solar projects, and grid-scale developments will be crucial in the years ahead.
• Energy storage and grid upgrades are essential: To handle more renewable power, Ireland needs to expand battery storage and modernise the grid to improve energy flexibility and reduce curtailment.

Looking ahead, Ireland has a unique opportunity to become a clean energy powerhouse. With wind resources and improving solar capacity, the country is well positioned to generate more than enough renewable electricity to meet its needs—and even become a major exporter of clean energy to Europe.

However, policy and infrastructure must keep up. The next five years will be decisive in ensuring that Ireland meets its climate commitments and secures its place as a leader in the EU’s energy future.

At UrbanVolt, we are committed to powering this transition by providing businesses with clean, cost-effective energy solutions. The time for action is now, reach out to us today.