EU expects to add record renewable capacity in 2025, industry sees headwinds

By Kate Abnett

BRUSSELS (Reuters) -European Union countries are projected to install a record amount of renewable energy capacity this year, European Commission projections showed, although parts of the sector warned cuts to government support could hamper this growth.

EU countries are expected to add 89 gigawatts of new renewable energy capacity in 2025, including 70GW of solar and 19GW of wind, according to Commission projections shared with Reuters. The projections are based on industry data.

That would be a record high for annual deployment of both wind and solar. The EU installed 65.5GW of new solar in 2024 and 12.9GW of wind capacity.

A fast roll-out of renewable energy is needed for the EU to meet its climate goals, and to displace some gas consumption to help meet the bloc's aim to phase out Russian gas imports by 2027.

However, renewables firms are facing headwinds including years-long delays to receive permits.

Industry association SolarPower Europe said it may revise downwards its projections for 2025, after France outlined plans in February to cut feed-in-tariff support for rooftop solar panels.

"Some big markets have taken significant steps back since the beginning of the year," the group's CEO Walburga Hemetsberger said. "It is looking less and less likely we'll hit 70GW this year."

The growth of solar power installations in Europe slumped to 4% last year, having jumped by more than 50% the year before. The EU needs to install roughly 70GW of new solar capacity each year to meet its 2030 green goals.

Top wind power developer Orsted has warned the industry in Europe is grappling with higher costs and supply chain disruptions.

Industry group WindEurope said in February it expected the EU to add 17.4GW of new wind capacity this year - a 35% increase on last year's new installations.

(Reporting by Kate Abnett, editing by Ed Osmond)