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    Home > Finance > Wind and solar overtake fossil fuels in EU power supply
    Finance
    Wind and solar overtake fossil fuels in EU power supply

    Published by Global Banking and Finance Review

    Posted on January 21, 2026

    2 min read

    Last updated: January 21, 2026

    Wind and solar overtake fossil fuels in EU power supply - Finance news and analysis from Global Banking & Finance Review
    Tags:sustainabilityrenewable energysolar powerClimate Change

    Quick Summary

    Wind and solar power surpassed fossil fuels in EU electricity generation, marking a shift towards renewables. Renewables and nuclear now supply 71% of EU electricity.

    Table of Contents

    • The Shift to Renewable Energy in Europe
    • Growth of Solar and Wind Power
    • Challenges in the Energy Transition
    • Political and Economic Implications

    Wind and Solar Energy Surpass Fossil Fuels in EU Electricity Generation

    The Shift to Renewable Energy in Europe

    BRUSSELS, Jan 22 - Wind and solar power produced more electricity than fossil fuels in the EU for the first time last year, data published on Thursday showed, indicating the bloc's continued shift towards low-carbon energy despite resistance from some governments.

    Growth of Solar and Wind Power

    Wind and solar generated 30% of the European Union's electricity in 2025, just above the 29% supplied by fossil fuel power plants running on coal, gas and occasionally oil, according to data from energy think-tank Ember.

    Challenges in the Energy Transition

    A 19% jump in solar capacity drove the record output from renewables. That growth offset reduced hydropower generation caused by drought, while gas-fired output rose 8% to help fill the shortfall, Ember said.

    Political and Economic Implications

    Solar now provides more than one-fifth of electricity in countries including Hungary, Spain and the Netherlands.

    Europe's electricity mix is now mostly low-carbon, with renewables and nuclear power together supplying 71% of EU electricity last year, the data showed.

    While sectors such as transport still rely heavily on fossil fuels, the EU has been gradually shifting to cleaner energy to meet climate targets and reduce reliance on imported fuel, including from Russia.

    The transition has faced political pushback. Pressure from governments including Germany and the Czech Republic prompted Brussels to weaken key CO2-cutting measures last year.

    An EU deal with President Donald Trump to massively increase purchases of U.S. energy has also raised questions about Europe's plans to wean itself off oil and gas.

    Coal's share of EU power generation fell to a record low of 9.2%, with top consumers Germany and Poland both posting all-time lows.

    Despite strong growth in clean electricity, Europe has struggled to ease costs for households and industry. Underinvestment in power grids has forced wind and solar operators to switch off during periods of high output to prevent network overload, wasting cheap electricity and adding to costs.

    Ember said price spikes last year coincided with peaks in gas usage and urged the EU to boost investment in grids and battery storage to stabilise power prices.

    (Reporting by Kate Abnett. Editing by Mark Potter)

    Key Takeaways

    • •Wind and solar energy surpassed fossil fuels in EU electricity generation.
    • •Renewables and nuclear power supply 71% of EU electricity.
    • •Solar capacity increased by 19%, offsetting reduced hydropower.
    • •Political resistance affects EU's energy transition efforts.
    • •Underinvestment in grids leads to wasted renewable energy.

    Frequently Asked Questions about Wind and solar overtake fossil fuels in EU power supply

    1What is renewable energy?

    Renewable energy is energy generated from natural resources that are replenished over time, such as sunlight, wind, and water. It is considered more sustainable than fossil fuels.

    2What is solar power?

    Solar power is energy harnessed from the sun's rays using solar panels or other technologies. It is a key component of renewable energy strategies.

    3What is fossil fuel?

    Fossil fuels are natural substances formed from the remains of ancient plants and animals, primarily coal, oil, and natural gas, used as energy sources.

    4What is energy transition?

    Energy transition refers to the global shift from fossil fuel-based energy systems to renewable energy sources, aimed at reducing carbon emissions and combating climate change.

    5What is climate change?

    Climate change refers to significant changes in global temperatures and weather patterns over time, largely driven by human activities such as burning fossil fuels.

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