Europe is advancing its energy transition, aiming for 58% of its power mix to come from renewable sources by 2025. Key technologies driving this shift include wind, solar, energy storage, and low-carbon solutions like hydrogen and carbon capture, utilization, and storage (CCUS). Despite this progress, the region faces significant obstacles in reaching its 2030 climate goals.
According to a report from ResearchAndMarkets.com, the European Union’s (EU) renewable energy sector is experiencing rapid growth, fueled by supportive policies and ambitious targets. Wind and solar energy are leading this expansion, contributing to a projected increase in renewable power generation from 43% in 2025 to 58% by 2035.
Energy storage is also crucial for the transition, with capacity expected to rise from 25 GW in 2025 to 85 GW by 2030. This increase will help balance the intermittent nature of renewable energy sources. Electric vehicle (EV) adoption is accelerating, with projections indicating that battery electric vehicles will comprise 82% of light vehicle sales in the EU by 2035.
In the aviation sector, sustainable aviation fuels (SAFs) are set to play a key role in decarbonization efforts. The EU’s ReFuelEU Aviation initiative mandates that SAFs must account for 2% of aviation fuel by 2025, increasing to 70% by 2050.
While some countries within the EU are making notable strides, the region as a whole may not exceed 50% renewable generation until 2030. The slow phase-out of fossil fuels, permitting delays, and investment barriers hinder faster progress. Approximately 100 GW of thermal capacity is expected to be retired by 2035, but gas will continue to be part of the energy mix, with around 60 GW of new capacity anticipated in the same timeframe.
Europe is emerging as a leader in low-carbon hydrogen and CCUS projects, with a projected capture capacity of 311 million tonnes per annum (mtpa) by 2030. The region also boasts the largest low-carbon hydrogen project pipeline in the world, targeting 22 mtpa of capacity by 2030, with 37% of projects already in post-feasibility stages.
Despite these advancements, the high costs associated with low-carbon technologies, slow permitting processes, and uncertainty surrounding long-term price signals pose challenges to securing final investment decisions. The report emphasizes the need for streamlined policies and increased financial support to overcome these hurdles and achieve the EU’s climate targets.
In summary, Europe’s energy transition is poised for growth, with ambitious targets driving renewable adoption and investment. However, concerted efforts are necessary to address existing challenges and ensure the region meets its climate goals by 2030.
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