The Energy Transition in the Power Sector in Europe 2016

New analysis from Sandbag and Agora Energiewende shows EU power emissions fell 4.5% in 2016, primarily through a huge switch from coal generation to gas generation.

Year-on-year, coal generation across Europe fell by 12%, whilst gas increased by 20%. Half of this switch happened in the UK, as many coal plants permanently closed and a higher carbon price took effect. Switches from coal to gas also happened in Germany, Italy, the Netherlands and Greece, in part from a temporary fall in gas price during 2016.

Renewables increased only slightly (from 29.2 % to 29.6 % of the electricity mix) due to poor conditions and slower solar and biomass growth. Massive price falls in offshore wind and solar give hope of robust future growth.

Electricity consumption is no longer structurally falling, suggesting energy efficiency measure need to be stepped up.

On the failing EU Emissions Trading System, structural oversupply has now passed the landmark of 3 billion tonnes of CO2.