European Electricity Review Report Published

International energy think tank Ember has published the European Electricity Review report, which analyzes EU countries' electricity generation and demand data for 2023. According to the report, EU countries' electricity generation from coal declined by 26 percent year-on-year in 2023, falling to 333 terawatt-hours and reaching its lowest level to date. As a result, coal met 12 percent of EU electricity generation last year. In electricity generation from natural gas, the largest year-on-year decline since 1990 was recorded at 15 percent. Natural gas's share in EU electricity generation reached 16.8 percent in 2023. With total electricity generation from fossil fuels declining by 19 percent last year, these sources provided less than one-third of EU electricity for the first time.

Renewable energy sources set record share in EU electricity generation

Wind energy met 17.6 percent of EU electricity generation last year, surpassing natural gas for the first time. Solar energy's share of total electricity generation reached 9.1 percent. Wind and solar energy combined generated 26.7 percent of EU electricity in 2023, exceeding one-quarter for the first time. Hydroelectric generation recovered from 2022's low levels, providing 11.8 percent of EU electricity last year, while nuclear energy accounted for 23 percent of total electricity. As a result, renewable energy sources' combined share in EU electricity generation set a record at 44 percent. Due to the increasing share of renewable energy sources, particularly wind and solar, and the sharp decline in electricity generation from fossil fuels, the EU achieved the largest drop in emissions from the electricity generation sector on record at 19 percent. Beyond growth in renewable energy, declining electricity demand also contributed to reduced fossil fuel generation. EU electricity demand fell 3.4 percent in 2023 compared to the previous year. More than one-third of this decline occurred in the industrial sector's electricity consumption. According to Ember's analysis, the EU is moving toward a clean energy system, but renewable energy sources need to expand faster to meet EU targets. Meeting EU targets requires accelerating growth in wind and solar energy. The EU's REPowerEU plan envisages increasing wind and solar energy's share in electricity generation from 27 percent in 2023 to 55 percent by 2030.

"This is not the time for complacency"

Ember Europe Program Director Sarah Brown, commenting on the report, noted that the EU energy sector is undergoing major transformation, stating: "As a system emerges with wind and solar energy at its backbone, fossil fuels play an increasingly smaller role. The energy crisis and Russia's invasion of Ukraine did not lead to a resurgence of coal and gas. As coal is phased out and wind and solar develop, gas too will enter its final decline. However, this is not the time for complacency. The EU must focus on rapidly deploying wind, solar and flexibility to create a system free from the risks of fossil fuels." Ember Global Director Dave Jones, meanwhile, pointed to a new era in which EU electricity demand will increase as electrification advances through more heat pumps, electric vehicles and electrolyzers, continuing: "Delivering the emission cuts required for a safe climate will require renewable energy sources to keep pace with this rising demand." European Parliament Vice-President Martin Hojsik said Europe's economy is transitioning from fossil fuels to clean energy. Noting that some countries are competing to use more wind and solar energy as a social and economic opportunity, Hojsik warned: "Other countries, particularly in Central and Eastern Europe, are falling behind on this and risk missing this opportunity. The continent's competitiveness is at stake. The EU must collectively and swiftly transition to clean energy not only to benefit from the advantages of energy transformation but also to protect itself from security risks related to imported fossil fuels." Source