Highlights
30%
Wind and solar share of EU electricity generation in H1-2024
27%
Fossil share of EU electricity generation in H1-2024
-17%
Fall in fossil generation in H1-2024
About
This report analyses developments in the EU’s power sector in the first six months of 2024 (H1-2024), to measure the progress of its clean energy transition.
Executive summary
Wind and solar overtake fossil fuels in the first half of 2024
The EU electricity transition is in full swing even as demand rebounds following crisis years.
Senior Energy & Climate Data Analyst, Ember
The first half of the year shows fossil generation’s narrowing role in the power sector, and gains for renewables that are beyond temporary variations in conditions. We are witnessing a historic shift and it is happening rapidly. If Member States can keep up momentum on wind and solar deployment then freedom from fossil power reliance will truly start to come into view.
![Chris Rosslowe](/img/2022/01/Chris.jpg?w=272&h=272)
First six months of 2024 in review
EU fossil generation continues structural decline as wind and solar outpace increasing demand
Even as electricity demand began to rebound in the first half of 2024, strong wind and solar growth pushed fossil generation into continued decline.
In this chapter:
Wind and solar overtake fossil fuels
New era in sight as wind and solar bring structural shift
The EU’s power sector continued to show signs of fundamental change as wind and solar generated more electricity than fossil fuels.
In this chapter:
While the scale of future falls in fossil generation is uncertain, significant wind and solar capacity additions throughout 2024 mean that this tipping point is likely to be permanent. Wind Europe expects 15.8 GW of wind capacity to be installed in the EU in 2024, while SolarPower Europe forecasts 62 GW of solar capacity additions over the same period.
Under these scenarios, wind and solar generation would still exceed fossil generation in the first half of 2025, even if hydro generation returned to its worst output for the period in the last five years and EU electricity demand grew at the fastest rate seen in the last five years. The first half of 2021 saw a 5.8% increase in demand following the Covid-19 lockdown in 2020. That rate of demand growth is unlikely to materialise in the near-term in the near-term, with the IEA expecting EU electricity demand to grow more slowly, at 2.3% per year on average between 2024-26.
The EU has more to do
Further acceleration is needed to sustain this transformation
The transformation of the EU’s electricity system has been swift over recent years. The first half of 2024 in particular has seen almost unprecedented falls in fossil generation despite demand growing. Renewables have played a vital role in alleviating high power prices in the bloc, but sustaining the pace of this transition will not be an easy feat. It will require dedicated policy action and implementation to ease barriers to future wind and solar deployment.
Annual additions of EU solar capacity increased by at least 40% or more in the three years up to and including 2023. While annual additions are expected to continue to increase, the growth rate of additions is forecast to slow to under 20% per year. Such growth would still be sufficient to reach the EU’s target of 750 GWdc installed capacity by 2030 under the REPowerEU plan. However, the latest Member State plans aim to collectively deliver only 650 GWdc by 2030, exposing a gap between EU energy goals and national ambitions.
The EU’s wind capacity additions are expected to ramp up only from 2025 onwards, as longer project lead times mean that the increased auction volumes and investment decisions in 2023 will take longer to deliver larger deployment. However, under current policy conditions, the EU is still forecast to fall 30 GW short of the minimum 425 GW required to meet its 2030 target, and further short of the 500 GW stipulated in the REPowerEU plan.
As power prices return to pre-crisis levels, Europe cannot rely on the market alone to drive the necessary acceleration of renewables deployment. Well-designed and implemented incentive schemes will remain important to sustaining momentum, as demonstrated by the impressive solar expansion continuing in Germany in 2024. Non-market barriers, such as grid capacity constraints, must also be overcome. This is evident in the Netherlands, where the network has struggled to keep pace with the country’s solar boom.
Progress has already been made in developing policies to tackle these challenges, but rapid action is needed to unlock faster growth in renewables. Ursula von der Leyen’s reappointment as President of the European Commission confirms a continued mandate to deliver on the Green Deal’s ambitious targets, as she remains firmly committed to the EU’s leadership on climate action. Thoughtful and rapid intervention to deliver on these goals is the only way to further reduce Europe’s costly reliance on fossil fuelled generation and align the EU’s energy goals with its climate obligations.
Supporting Material
Methodology
The data in this piece is curated by Ember. The full dataset is available to download. Please address any data queries to [email protected].
Monthly generation, imports and demand
Monthly data is gathered from a number of sources, including both centrally reported ENTSO-E data and directly reported national transmission system operators. In some cases data is published on a monthly lag; here we have estimated recent months based on relative changes in previous years. These cases are flagged in the dataset. Monthly published data is often reported provisionally, and is far from perfect. Every effort has been made to ensure accuracy, and where possible we compare multiple sources to confirm their agreement. Below is a list of countries included, and sources for recent monthly data. A complete country-by-country methodology for all countries, including those outside of Europe, is available for download here.
- Austria: Hydro from Eurostat; other fuels from ENTSO-E
- Belgium: ENTSO-E
- Bulgaria: ENTSO-E
- Croatia: ENTSO-E
- Cyprus: Eurostat, with demand estimates from the Cyprus Transmission System Operator
- Czechia: ENTSO-E
- Denmark: ENTSO-E
- Estonia: ENTSO-E
- Finland: Biomass, gas, hydro, solar and wind from Eurostat; other fuels from ENTSO-E
- France: ENTSO-E
- Germany: Gas and solar from Energy Charts; all other fuels from Agora
- Greece: ENTSO-E
- Hungary: Solar data from Eurostat; other fuels from ENTSO-E
- Ireland: Sustainable Energy Authority of Ireland
- Italy: Biomass and solar from Terna; other fuels from ENTSO-E. Flow data from Terna
- Latvia: ENTSO-E
- Lithuania: ENTSO-E
- Luxembourg: ENTSO-E
- Malta: Eurostat
- Netherlands, the: Statistics Netherlands, with recent months estimated using data from NetAnders. We are grateful to NetAnders for the use of their data
- Poland: Historical solar data until June 2020 from ARE via Instrat; other fuels from ENTSO-E
- Portugal: ENTSO-E
- Romania: ENTSO-E
- Slovakia: ENTSO-E
- Slovenia: ENTSO-E
- Spain: ENTSO-E. Flow data from REE
- Sweden: ENTSO-E
Weather conditions analysis
This report includes analysis on weather conditions and their impact on electricity demand as well as generation from renewable sources.
- The analysis of weather impacts on electricity demand is based on country-level temperature data from the ERA5 dataset. We conducted a regression analysis of the relationship between heating degree days and daily load data by country. The regression also included time-fixed effects on a yearly level to account for structural differences, such as COVID-19 restrictions. We estimated the temperature-adjusted electricity demand using the coefficients from the regression analysis and the differences in heating degree days between the first six months of 2024 and the first six months of 2023.
- For hydro generation, we attributed the entire difference in output between the first half of 2024 and the first half of 2023 to varying conditions, as the installed capacity has remained nearly constant
For wind and solar generation, we utilised wind speed and solar insolation data from the ERA5 dataset, sampling up to 50 locations per country. These locations were derived from the largest wind and solar projects in each country, based on Global Energy Monitor’s wind and solar tracker datasets and then clustered into a maximum of 50 locations. We calculated a simulated capacity factor for each location and subsequently derived a country-level wind and solar capacity factor by weighting the results of individual locations by their capacity. Using the percentage difference in the simulated capacity factor between the first six months of 2024 and the first six months of 2023, we compared the expected output in 2024 with the actual output to derive values for structural and condition-based changes.
Acknowledgements
We would like to thank Sarah Brown, Ali Candlin, Chris Rosslowe, Josie Murdoch, Reynaldo Dizon, Chelsea Bruce-Lockhart and Sam Hawkins for their contributions and review.
Image creditWieslaw Jarek / Alamy Stock Photo