NextFin News - In a landmark achievement for the global energy transition, wind and solar energy generated more electricity in the European Union than all fossil fuels combined throughout 2025. According to the annual European Electricity Review released on January 22, 2026, by the energy think tank Ember, wind and solar accounted for a record 30% of the EU’s total electricity generation, narrowly eclipsing the 29% share held by fossil fuels. This represents a dramatic reversal from just five years ago, when fossil fuels maintained a dominant 37% share compared to 20% for wind and solar.
The shift was primarily propelled by an extraordinary expansion in solar energy, which saw generation grow by 20% for the fourth consecutive year, reaching 369 TWh. While wind power remained the second-largest individual source of electricity at 17%, its growth was slightly tempered by unusual weather patterns early in the year, resulting in a marginal 2% decline in output. Despite these fluctuations, the broader renewable category—including hydropower and biomass—supplied 47.7% of the EU's power. Nuclear energy remained a stable pillar of the mix, contributing 23.4%, while coal plummeted to a historic low of 9.2%.
Dr. Beatrice Petrovich, senior energy analyst at Ember and lead author of the report, noted that the milestone was reached in 14 of the 27 EU member states. However, the transition was not without friction. A 12% drop in hydropower output due to drier conditions forced a temporary 8% increase in gas generation to fill the gap. This reliance on gas added approximately €32 billion to the EU’s import bill in 2025, highlighting the continued economic sensitivity to volatile global gas markets. According to Petrovich, the next strategic priority for the bloc is to "put a serious dent" in this gas dependency to insulate the economy from "energy blackmail."
The analytical significance of 2025 lies not just in the volume of green electrons, but in the maturation of the "electrotech" ecosystem. The year marked the beginning of a "battery revolution" in Europe, with Italy and Germany leading a surge in grid-scale storage projects. This infrastructure is proving vital in addressing the intermittency of renewables; for the first time, data suggests that battery storage is effectively shifting solar power into evening peak hours, traditionally dominated by expensive gas-fired plants. In Germany alone, storing rather than curtailing excess renewable energy could have saved an estimated €830 million last year.
From a geopolitical perspective, this energy pivot is a direct response to the instability of the mid-2020s. U.S. President Trump’s inauguration on January 20, 2025, and his subsequent trade policies have introduced new variables into the EU’s energy security calculus. While the EU has committed to ending all Russian gas imports by 2027, the rising reliance on U.S. Liquefied Natural Gas (LNG) has created a new single-supplier vulnerability. Analysts at Ember warn that heavy dependence on any single exporter weakens the EU’s bargaining power in trade disputes. Consequently, the acceleration of domestic renewables is increasingly viewed through the lens of strategic autonomy rather than just climate policy.
Looking ahead to 2026 and beyond, the trend suggests that fossil fuels have entered a terminal decline in the European power sector. The "merit order effect"—where renewables with zero marginal costs push expensive fossil generators out of the market—is becoming the default state. However, the pace of future gains will depend on overcoming grid congestion. In major hubs like Frankfurt and Dublin, connection queues for new projects now stretch between seven to ten years. If the EU can successfully modernize its transmission networks and scale demand-side flexibility, the 2025 milestone will be remembered as the tipping point where the continent transitioned from a fossil-dependent economy to a self-sustaining electrostate.
Explore more exclusive insights at nextfin.ai.
