The European Union recorded its cleanest power generation mix in 2024, with renewables driving a 59% reduction in emissions compared to 1990 levels, according to Eurelectric. Power sector emissions declined 13% year-on-year, marking the lowest level in the bloc's history.
Renewables accounted for 48% of the EU power generation mix, surpassing fossil fuels, which dropped to an all-time low of 28%. Nuclear energy contributed 24%, maintaining its position as the largest single source of power. Wind energy sustained its lead over natural gas, while hydro and solar output increased by over 40 terawatt-hours (TWh) compared to 2023—a combined output sufficient to meet the annual electricity demand of Belgium and Denmark.
Despite these advances, power demand grew by less than 2% in 2024 compared to 2023 and remains below pre-crisis levels. While increased energy efficiency and conservation played a role, more than half of the decline in demand is attributed to an industrial slowdown. Germany saw a 13% drop in industrial power consumption between 2021 and 2023, with further reductions anticipated for 2024 as industrial production declined by 4% year-on-year.
Average wholesale day-ahead market prices fell to €82 per megawatt hour (MWh) in 2024, down from €97/MWh in 2023. Prices remained as low as €76/MWh until late in the year when a combination of surging gas prices, high winter demand, and limited solar and wind generation caused localized price spikes, particularly in Germany, Hungary, Romania, and Sweden.
Negative electricity prices also reached a new record, occurring 17% of the time in at least one bidding zone, underscoring the challenges of integrating high levels of renewables into the grid.
Eurelectric highlighted the importance of enhancing grid flexibility and firm capacity to stabilize the variability of renewable energy and limit reliance on costly fossil fuels during periods of low renewable output.
“Investing in higher renewable generation is the right path for a more competitive and decarbonized economy,” said Cillian O'Donoghue, policy director at Eurelectric. “However, this must be complemented by firm and flexible capacity to balance variability and contain price spikes.”
O'Donoghue also emphasized the need for greater electrification to drive decarbonization. “Electrification remains the low-hanging fruit for decarbonizing the EU. The more you electrify your energy applications, the easier it is to decarbonize, but electricity demand is not where it should be today.”
The EU's progress in 2024 demonstrates the potential for renewables to reshape the energy landscape. However, the continued industrial slowdown, coupled with the variability of renewable output, highlights the need for policy measures and investments to enhance energy system flexibility and stimulate demand.
