• In 2024, CO2 emissions from the electricity sector fell by 13 per cent across Europe compared to the previous year.
• Solar and wind power are leading the transition, setting new production records.

2024 was a landmark year for electricity generation in Europe, with CO2 emissions at an all-time low and an energy mix that reflects a decisive shift towards renewable sources. According to data from Eurelectric, the European electricity industry federation, emissions from electricity generation fell by 13 per cent compared to 2023, dropping from 542 to 471 million tonnes of CO2 equivalent (MtCO2eq). At the same time, the share of fossil fuels in the electricity mix fell to 28 per cent, while renewables reached 48 per cent and nuclear 24 per cent.

These results demonstrate the continent's commitment to pursuing decarbonisation goals and energy resilience. Nuclear power recorded the highest output at 656.4 terawatt-hours (TWh), followed by wind (496.5 TWh) and natural gas (401.3 TWh). Solar and hydropower together grew by more than 40 TWh compared to the previous year, setting new records. Coal continued its decline, settling at 265.2 TWh, underscoring a progressive phase-out of the most polluting sources. Eurelectric notes that European electricity demand in 2024 stood at 2,726 TWh, up 1.1 per cent on the previous year, yet still below pre-crisis levels. Growth was held back by greater energy efficiency as well as a slowdown in industrial output.

Germany: a new balance between records and challenges

Two European examples more than any others illustrate this positive trend for renewables. In Germany, clean energy sources hit a milestone at the start of 2024, with electricity generation exceeding national demand on certain days. According to data from the Fraunhofer-Institut, on 1 January a peak was recorded in which the contribution of renewables reached 125 per cent of electricity demand during peak hours. This extraordinary result was made possible by a combination of favourable weather conditions — strong winds in northern Germany and high output from solar installations.

Throughout the year, there was a significant increase in installed renewable capacity, with the addition of 3 gigawatts (GW) of wind energy and almost 15 GW of solar, bringing total capacity to 72.4 GW and 97.6 GW respectively. Overall, renewables covered 54 per cent of electricity consumption in Germany, up from 52.5 per cent in 2023. Despite these successes, challenges remain, linked to the need to use gas and coal plants in some areas to guarantee local energy supply. Furthermore, Germany has become a net electricity importer following the phase-out of nuclear power, while still exporting significant volumes of energy on days of renewable surplus.

Great Britain: towards an ever-cleaner electricity grid

The other country that has distinguished itself through its commitment to renewables is the United Kingdom, for which 2024 was a record year for clean electricity, with 58 per cent of total generation coming from low-carbon sources. According to an analysis by Carbon Brief, the country has more than halved its use of fossil fuels compared to ten years ago and doubled its output from renewable sources. However, natural gas retained its position as the single largest generation source, accounting for 28 per cent of the total, although the contribution of wind power grew to 26 per cent.

Thanks to a 67 per cent reduction in CO2 emissions per unit of electricity compared to 2014, the United Kingdom is drawing closer to its goal of decarbonising the electricity system by 2030. The government has pledged to accelerate the expansion of renewable energy, in particular solar and wind, to achieve a 95 per cent low-carbon grid by the end of the decade. Despite the challenges posed by fluctuations in wind output in 2024, projections indicate that wind could overtake gas as the primary energy source as early as 2025.

And what about Italy?

In 2024, Italy made progress in the energy transition, with an increase in installed renewable capacity: over 7 GW, improving on 2023 (5.7 GW). The share of electricity from renewables as a proportion of total demand will exceed 40 per cent for the first time, compared to 37 per cent the previous year.

However, what is undermining the decarbonisation of the electricity system is a deep-seated scepticism that must be overcome through decisive intervention in the mechanisms by which electricity prices are set. Only when it becomes possible to measure "a direct cause-and-effect correlation between the growing share of energy produced from renewables and a reduction in energy prices, will all sector stakeholders — from public administrators to end customers, both businesses and households — develop greater awareness and confidence, unlocking bottom-up growth," as energy expert Fabrizio Bonemazzi explains clearly on QualEnergia. It is a complex issue, long debated at European level, but one that can no longer be deferred.

What will 2025 hold for renewables?

Analysing the clean energy sector involves a constant tension between good and bad news. While 2024 saw significant growth in clean technologies, these advances are still insufficient to meet net-zero emissions targets by 2050.

Among the greatest difficulties is the continued slowdown in the electrification of transport and the production of batteries for storing renewable energy — areas where Europe struggles to keep pace with the competition. The geopolitical context, with the return of the Trump administration, adds further uncertainty.

Despite this, Bloomberg's economic journalists highlight five key lessons:

• The energy transition will not slow down: because despite the challenges, clean technologies continue to grow;
• The current phase is the most complex: because more mature markets are exhausting the easier opportunities, pushing towards solutions such as greater storage and flexibility, while emerging markets require appropriate policies;
• We must pay close attention to data: perceived slowdowns do exist — as in the European electric vehicle market — but they often reflect specific regulatory circumstances rather than a lack of demand;
• The profitability of the transition: to attract private investment, technologies must deliver adequate returns;
• Geo-economic competition: the transition is shaped by rivalry between countries seeking economic and energy-security advantages. This introduces complexity into the clean technology sector, with excess production capacity and price pressures.

In summary, the energy transition is advancing amid successes and challenges alike. If we want this process to continue in a functional way, it is essential to foster greater political unity and counter the divisions that are increasingly characterising our society. Defending multilateralism in the environmental sphere must be a political imperative in 2025.