Renewable energy will generate more than half of EU electricity in first half of 2024

Although solar’s ​​share is smaller than some other forms of renewable energy generation, the solar sector is on track for a record year. If the pace of electricity production continues into the second half of 2024, solar will generate 274 TWh of electricity by the end of the year, more than coal-fired power plants for the first time.

The chart below shows the share of different energy sources in the EU energy mix in recent years and the projected electricity generation rate by the end of the year if each energy source maintains its electricity generation rate in the second half of 2024.

The graph shows how renewables have become an increasingly integral part of the EU’s energy mix over the past five years, with wind and hydropower on track to overtake electricity generation from natural gas by the end of 2024. The share of wind, hydro and solar in the EU’s energy mix increased between 2020 and 2023, and this trend is set to continue in 2024, while the share of fossil fuels and nuclear decreased over the period.

Eurelectric also notes that “low-carbon energy sources”, meaning renewables and nuclear, accounted for 74% of EU electricity supply in the first half of 2024, up from 68% in 2023.

“The pace of change is impressive,” said Eurelectric Secretary General Kristian Ruby. “These figures document that energy companies’ efforts to decarbonize are years ahead of any other sector.”

Much of this growth in solar generation was driven by new capacity additions in some of Europe’s largest PV markets. Germany added more than 5 GW of new solar capacity in the first four months of the year, while Italy’s utility sector grew by 373% in the first quarter of 2024. The strong performance of the European solar sector is a microcosm of growth in global solar deployments, with global installed solar capacity rising by 87% in 2023.

But there are still questions about the European PV sector, particularly about the financial viability of locating production capacity upstream on the continent. This was a common topic of discussion at last month’s Intersolar event in Germany, and expanding European production is a priority for the long-term health of the European PV sector.

Ruby also noted that electricity demand in Europe has been falling in recent years, which could create an imbalance between renewable energy demand and supply on the continent that could threaten the long-term viability of renewable energy generation in Europe. According to Eurelectric data, electricity demand in Europe in the first half of 2024 was 2.6% lower than in the first half of 2022, while electricity demand in the first half of 2023 was 3.4% lower than in the same period the previous year.

“Years of stagnation in electricity demand have now turned into a steady decline,” Ruby said. “Policymakers urgently need to support electricity deployment to provide the necessary investment signals for clean generation.”

Policymakers have already taken a number of steps to improve other aspects of Europe’s renewable energy sector, most notably the implementation of the Net Zero Industry Act (NZIA) last weekend and the launch of the European Solar Energy Academy at Intersolar Europe last month.