Wind and Solar Take the Lead in Europe’s Power System as Fossil Fuels Fall Behind in 2025

Renewable electricity crossed a historic threshold in the European Union in 2025, with wind and solar generation overtaking fossil fuels in the bloc’s power mix for the first time. New analysis from Ember shows that the shift was driven by continued growth in solar capacity and reinforced by structural changes already reshaping Europe’s electricity system, from coal phaseouts to market reforms and grid investments.

Together, wind and solar supplied 30 percent of EU electricity last year, narrowly exceeding fossil fuels, which fell to 29 percent. Solar alone delivered 13 percent of total power and recorded growth of more than 20 percent for a fourth consecutive year, while wind contributed 17 percent. The figures highlight a turning point for Europe’s energy transition, moving clean power from a supporting role into a leading position.

 

Solar Expansion Offsets Weather Volatility

 

The milestone came despite challenging weather conditions. Early 2025 was unusually sunny across much of Europe, but it also brought weaker wind speeds and reduced rainfall. As a result, hydroelectric output dropped by 12 percent compared with the previous year, while wind generation slipped by around 2 percent.

Solar growth proved decisive in maintaining momentum. According to Ember, solar generation increased in every EU member state, underscoring how distributed and utility-scale solar has become a stabilising force in the power system. In countries such as Hungary, Cyprus, Greece, Spain, and the Netherlands, solar supplied more than one fifth of national electricity demand.

Beatrice Petrovich, senior energy analyst at Ember and lead author of the report, said the performance demonstrated how solar can compensate for variability in other renewable resources. Strong solar output helped keep the overall share of renewables resilient even during periods when wind and hydro underperformed.

 

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Renewables Approach Half of EU Electricity

 

Beyond wind and solar, renewables as a whole accounted for 48 percent of EU electricity generation in 2025. Fourteen member states generated more power from wind and solar combined than from all fossil fuels, reflecting a deeper structural shift rather than a short-term fluctuation.

Accelerated coal retirements played a central role in this transition. Coal’s share of the EU power mix fell to a record low of 9.2 percent, continuing a long-term decline shaped by carbon pricing, national phaseout commitments, and limited reinvestment in coal-fired assets. Petrovich described coal’s trajectory as irreversible, arguing that it is steadily becoming a legacy technology in the European context.

 

Gas Dependence Remains a Costly Exposure

 

While coal declined, gas-fired generation increased by 8 percent in 2025 as utilities compensated for lower hydro output. This reliance came at a price. Gas imports for power generation rose by 16 percent to €32 billion, roughly $37 billion, marking the first annual increase since the 2022 energy crisis.

Ember linked higher gas usage to increased wholesale electricity prices, noting that power during gas-heavy hours was 11 percent more expensive than in 2024. The data underlines how continued exposure to imported gas leaves the power system vulnerable to global market volatility, even as renewables gain ground.

Petrovich argued that reducing reliance on gas should now be a priority for policymakers, particularly given its impact on prices and energy security. Cutting gas dependence, she said, is essential if Europe wants to lock in the benefits of its expanding clean power base.

 

System Flexibility Moves to the Forefront

 

As wind and solar take on a larger share of generation, system flexibility is becoming a central challenge. Ember pointed to rapid growth in battery storage, especially in Germany, Italy, and Poland, as a key development. Storage capacity is expected to help shift renewable output toward evening demand peaks, reducing price volatility and balancing costs.

Demand-side response, grid reinforcement, and cross-border interconnections are also gaining importance. These measures are increasingly seen as necessary complements to renewable deployment, enabling higher penetration without compromising reliability.

 

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Policy Reform and Market Signals

 

The changing power mix is unfolding alongside regulatory reform. The European Commission is finalising updates to electricity market design aimed at expanding long-term contracting, improving investment visibility for zero-carbon generation, and shielding consumers from short-term commodity price swings.

Member states are adjusting auction frameworks, streamlining permitting for wind and solar projects, and accelerating grid upgrades. For corporate buyers, the evolving mix is influencing power purchase agreements, carbon pricing exposure, and strategies to align operations with net-zero targets.

 

A Milestone With Global Implications

 

Europe’s experience carries significance beyond the region. As one of the world’s largest and most integrated power markets, the EU functions as a testing ground for clean energy at scale. The 2025 data shows that solar can offset weather-driven variability and that coal retirements can continue even under tight supply conditions.

The challenge now is to translate this progress into deeper reductions in gas dependence while supporting electrification and industrial decarbonisation. How Europe balances security, affordability, and emissions in the coming years will shape not only its own energy future, but also global debates on competitiveness, trade, and clean energy leadership.