The EU's commitment to accelerating renewable energy is shifting away from fossil fuels as time goes on with record falls in coal, gas and emissions. In 2023, based on Ember's new data, fossil fuel usage plummeted by a historic 19%, reaching its lowest level ever, accounting for less than one-third of the EU’s electricity generation.

Meanwhile, renewables surged to a record 44% share, surpassing 40% for the first time. Wind and solar power continued to be the main drivers of this renewable energy growth, generating a record 27% of EU electricity and achieving their largest-ever annual capacity additions. Furthermore, wind generation reached a major milestone by surpassing gas for the first time.

Clean generation reached more than two-thirds of EU electricity, says Ember, double fossil’s share, as hydro rebounded and nuclear partially recovered from last year’s lows alongside the increase in wind and solar. 

Coal was already in long-term decline, and that trend resumed in 2023. The temporary slowdown in coal plant closures during the energy crisis did not prevent a huge fall in coal generation this year, with a wave of plant closures imminent in 2024. Gas generation fell for the fourth consecutive year, and as coal nears phase-out in many countries, gas will be next to enter terminal decline.

In addition to clean growth, falling electricity demand also contributed to the drop in fossil fuel generation. Demand fell by 3.4% (-94 TWh) in 2023 compared to 2022, and was 6.4% (-186 TWh) lower than 2021 levels when the energy crisis began. This trajectory is unlikely to continue. With increased electrification, this rate of demand fall is not expected to be repeated in the coming years. To reduce fossil fuels at the speed required to hit EU climate goals, renewables will need to keep pace as demand increases.

"The EU’s power sector is in the middle of a monumental shift. Fossil fuels are playing a smaller role than ever as a system with wind and solar as its backbone comes into view. The energy crisis and Russia’s invasion of Ukraine did not lead to coal and gas resurgence — far from it. Coal is nearing phase-out, and as wind and solar grow, gas will be next to enter terminal decline. However it is not time to get complacent. The EU needs a laser focus on rapidly deploying wind, solar and flexibility to create a system free of fossil fuels," said Sarah Brown Europe Programme Director at Ember.

Ember added that in 2023, 24% of hours saw less than a quarter of electricity coming from fossil fuels, a major step up from just 4% of hours in 2022. As this shift becomes even more evident, so does the importance of enablers of a clean power system. Alongside wind and solar growth, grids, storage and demand side response will determine the power system of the future.