Europe stands on the brink of a profound change in its energy relationships. By 2025, renewable technologies will account for 58% of the continent’s total power capacity. Wind and solar energy will continue to be at the forefront of this remarkable shift. That momentum is only going to continue to grow. Furthermore, projections indicate that by 2030, over half of Europe’s electricity generation will be renewable.
The European energy storage sector is growing as fast as the U.S. Recent projections indicate that Europe will increase its energy storage capacity at a rapid pace. It will increase from 25 gigawatts (GW) in 2025 to nearly 85 GW by 2030. This expansion is critical for balancing when and where renewable energy sources generate power and maintaining a consistent, reliable, and resilient grid.
The common misconception that Europe is all-in on renewables plus storage. At the same time, it is positioning itself as a world leader in Carbon Capture, Utilization and Storage (CCUS). The continent aims for a capture capacity of 311 metric tons per annum (mpta) by 2030. This new move is a sign of Europe’s dedication to cutting greenhouse gas emissions and improving energy security.
This is another area where Europe leads the world. The continent is home to the world’s largest pipeline of low-carbon hydrogen projects, aiming for 22 mpta of capacity by 2030. Importantly, 37% of these projects have progressed past the feasibility stage, illustrating the sector’s willingness and preparedness to implement.
The region’s renewable electricity production is expected to grow dramatically over the next ten years. Indeed, projections show that renewables will account for 43% of Europe’s power mix as soon as 2025. That share is projected to increase dramatically. By 2035, it will reach a staggering 58%. Almost 100 GW of thermal capacity will be retired by 2035 to make room for this transition. Meanwhile, they’ll be adding about 60 GW of new gas capacity.
Battery electric vehicles (BEVs) are similarly poised for significant expansion. In fact, as a result of the standards, BEVs are expected to make up 82% of light vehicle sales in the European Union by 2035. This move toward electrification fits into a larger national push to reduce emissions and advance more sustainable forms of transportation.
Sustainable aviation fuels (SAFs) are becoming increasingly more popular in Europe, too. The recently established ReFuelEU Aviation initiative requires that sustainable aviation fuels (SAFs) account for at least 70% of aviation fuel by 2050. This commitment is indicative of the region’s deep commitment to decarbonizing the aviation sector.
Fierce policy support capitalizing on public discontent is rapidly accelerating Europe’s energy transition. This push is accelerating record growth in renewables, electric vehicles and other emerging technologies like low-carbon hydrogen and carbon capture, utilization & storage (CCUS). The dedicated cross-sectoral efforts do a great job of showcasing Europe’s leadership in the energy transition towards a more sustainable future.