Austria currently leads the European Union in renewable electricity use, with nearly 90% of its power originating from green sources. This achievement, reported by Eurostat, highlights a significant trend across the EU: a growing reliance on sustainable energy. The country’s substantial hydroelectric capacity is a key driver of this success, alongside increasing contributions from wind and solar power.
Sweden follows closely behind with 88% green electricity, primarily generated by wind and water, while Denmark secures the third position at 80% thanks to its extensive wind farm infrastructure. Portugal, Spain, and Croatia also demonstrate strong performance, exceeding 50% in renewable energy utilization. Conversely, Italy and France lag behind, ranking 18th and 21st respectively within the EU.
The Rise of Renewable Electricity in Europe
Across the European Union, the adoption of renewable energy sources has dramatically increased over the last two decades. In 2004, renewables accounted for only 16% of total electricity consumption. By 2014, this figure had risen to almost 29%, and as of today, renewable electricity constitutes 47.5% of the EU’s power mix.
This growth is fueled by a combination of policy initiatives, technological advancements, and decreasing costs associated with renewable energy technologies. The EU has set ambitious targets for increasing the share of renewables in its energy system, driving investment and innovation in the sector. This shift is crucial for meeting climate goals and reducing dependence on fossil fuels.
Will Solar Overtake Hydro as the Leading Green Source?
Currently, wind energy is the largest contributor to renewable electricity generation, accounting for 38% of the total. Hydropower follows with 26%. However, solar energy is experiencing the most rapid growth, increasing from just 1% in 2008 to over 23% in 2024, representing 304 TWh of generated power.
Ben McWilliams, an energy expert at Bruegel, predicts that “it is almost certain that solar will overtake hydro in the next few years.” He notes that while hydropower deployment has plateaued, solar installations continue at a record pace. This expansion of solar capacity is seen as vital for enhancing Europe’s energy security.
“Every new solar panel reduces oil, gas and coal dependency, and these dependencies are the true threats to European energy security,” McWilliams stated. The increasing affordability and efficiency of solar technology are making it an increasingly attractive option for energy producers and consumers alike.
EU’s Solar Reliance on China: A Cause for Concern?
A significant portion of solar panels installed within the EU are manufactured in China. Despite this reliance, experts like McWilliams do not believe it poses a long-term threat to European energy stability. He explains that solar panels represent a long-term asset.
“Solar panels are a stock not flow; once the EU has installed a panel from China, it is there forever,” he said. “If – for whatever reasons – solar panel imports from China stopped, it would just slow the build-out of new solar and supply would grow elsewhere (including domestically) over a two-three year period.”
The EU is actively working to bolster its domestic solar manufacturing capabilities. According to Solar Power Europe, there are currently 166 companies operating within the EU’s photovoltaic value chain. While Germany hosts the majority of these companies, the Netherlands leads in solar energy capacity per capita, generating approximately 1,044 W annually.
Looking ahead, the continued expansion of renewable energy sources, particularly solar, will be crucial for the EU’s energy transition. Monitoring the development of domestic solar manufacturing and diversifying supply chains will be key to ensuring long-term energy resilience. Further investment in grid infrastructure will also be necessary to accommodate the increasing influx of intermittent renewable energy.
