Wind and hydropower collectively contributed to over two-thirds of the total renewable electricity generation, representing 39.1% and 29.9%, respectively. The remaining one-third was sourced from solar energy (22.4%), combustible fuels (8.1%), and a small fraction (0.5%) from geothermal energy.

Wind Energy: Germany Leads as Expansion Continues Across Europe

The wind sector remains a cornerstone of renewable electricity generation in Europe. In 2024, 16.4 GW of new wind capacity was installed across the continent, with 12.9 GW in the EU, reinforcing the sector’s sustained growth. Of the new capacity, 84% came from onshore wind farms, reflecting the focus on land-based installations, although offshore projects also made progress.

Germany emerged as the leading country for wind energy expansion, adding 4.0 GW of new capacity in 2024. Its ambitious energy policy and continued development of both onshore and offshore wind farms have been instrumental in achieving this growth. The United Kingdom (1.9 GW) and France (1.7 GW) also contributed significantly to Europe’s wind power expansion.

Regarding electricity generation, Denmark and Ireland stand out, with 56% and 33% of their electricity coming from wind power, respectively. These figures highlight how some countries have successfully integrated wind energy into their grids, reinforcing their leadership in the clean energy transition.

Despite these achievements, the sector still faces significant challenges. Grid bottlenecks, limited port infrastructure for offshore wind installations, and delays in permitting processes continue to slow down the expansion of wind energy in some EU countries. These hurdles have led to a slower rollout of new projects, which could impact the EU’s decarbonisation targets for 2030.

Solar Energy: Strong Growth Despite a Slowdown

Solar photovoltaic energy has been a key driver of Europe’s energy transition, with sustained growth over recent years. In 2024, the EU installed 65.5 GW of new solar capacity, bringing the total operational capacity to 338 GW across the continent. However, despite this expansion, the growth rate has slowed significantly.

Between 2021 and 2023, solar power saw annual growth rates ranging between 41% and 53%, driven by the energy crisis and soaring fossil fuel prices. However, in 2024, growth slowed to just 4.4%, marking a sharp decline in the sector’s momentum. This slowdown has been attributed to various factors, including the reduction of government incentives, grid capacity limitations, and financial hurdles facing some large-scale solar projects.

Despite these challenges, some countries have continued to consolidate their leadership in solar power. Spain and Germany have led the installation of large-scale solar parks, while the Netherlands has excelled in integrating photovoltaic panels into residential and commercial rooftops. Poland has also seen significant growth, with solar energy accounting for 8% of its electricity supply and projected to reach 30 GW of installed capacity by 2030​.

Experts warn that the future of solar energy in Europe will depend on the adaptability of the electricity infrastructure. Grid constraints and a lack of energy storage capacity could become significant barriers to continued growth. To maintain momentum, European governments must prioritise investment in smart grids and energy storage solutions to enable better integration of solar power.

Green Hydrogen: Europe’s Bet on Decarbonisation

Green hydrogen has emerged as a key pillar of the EU’s decarbonisation strategy, particularly for hard-to-electrify sectors such as heavy industry and long-haul transport. Globally, hydrogen demand reached 97 million tonnes in 2023, but less than 1 million tonnes came from low-emission sources, underscoring the sector’s early-stage development.

Europe has positioned itself as a leader in green hydrogen development. Germany, the Netherlands, and France have launched large-scale projects to produce hydrogen through electrolysis, aiming to reduce reliance on fossil fuels in their industrial sectors. Spain and Portugal, meanwhile, are positioning themselves as key exporters of green hydrogen to Northern Europe, leveraging their favourable climate conditions for renewable energy generation​.

Despite these efforts, the sector faces considerable challenges. The high production cost of green hydrogen remains a major hurdle, slowing down its large-scale adoption. However, advances in electrolysis technology and economies of scale are expected to significantly lower costs in the coming decade. The EU has set a target to produce 10 million tonnes of green hydrogen annually by 2030, although current installed capacity remains insufficient to meet this goal​.