A new study from WindEurope, conducted in cooperation with Hitachi Energy, confirms that a European energy system built on high shares of renewables is by far the most cost-effective pathway for the continent. The analysis shows that even when factoring in the costs of grids, storage and back-up capacity, renewables remain the cheapest option.

Five Scenarios, One Clear Outcome

The study evaluates the total system costs of five energy scenarios:
four aligned with Europe’s net-zero objectives and one “slow transition” scenario in which the region fails to meet its climate targets.

According to the findings, scenarios that rely more heavily on nuclear power, hydrogen or carbon capture and storage (CCS) would all be significantly more expensive than a renewables-based model. By 2050, the cost differences between these scenarios and the renewables pathway range from €487 billion to €860 billion.

The contrast is even sharper when comparing a high-renewables scenario with the slow transition pathway. The study concludes that a renewables-based system would be €1.6 trillion less expensive by 2050.
This difference stems largely from the residual fuel costs and carbon costs that persist in the slow transition scenario.

The savings appear early: by 2035, the renewable scenario already delivers €331 billion in cost reductions compared to a delayed transition.

WindEurope highlights that the cumulative €1.6 trillion in savings is equivalent to what Europe spends on healthcare each year, and roughly 9% of the EU’s GDP.

Electrification and System Stability

The report notes that a renewable-based system requires a major expansion of electricity’s share in the energy mix, particularly through electrification in heavy industry. These investments were fully accounted for in the modelling—and even with these costs included, the renewables pathway remains the most affordable.

The study also finds that a high-renewables system ensures greater system stability, providing a significant energy security margin with production far exceeding demand.

Lower Dependence on Energy Fuel Imports

WindEurope and Hitachi Energy underline that a renewables-led system is the most resilient to external shocks, including geopolitical crises like Russia’s invasion of Ukraine.

In 2050, energy fuel imports would represent only 22% of total energy supply in the renewables scenario, compared with 54% in the slow transition scenario—dramatically reducing Europe’s exposure to volatile global markets.

Economic and Employment Benefits

The study also connects the renewable transition to job creation. The European wind industry, which currently employs around 440,000 people, is projected to reach 600,000 jobs by 2030.

"There is no upside to diminished climate ambition. There is no upside to slowing down renewables," the report emphasises.

A Transition Already Underway

WindEurope notes that Europe has already made major strides. In 2000, wind and solar accounted for just 0.8% of electricity generation. Today, they represent 30%. Over the same period, Europe’s emissions fell by nearly one third, while the economy grew 45%.

The study concludes that renewables offer Europe a competitive edge in what the IEA calls the emerging “Age of Electricity.” The message is clear: accelerating the renewable transition is not only essential for climate goals—it is economically, strategically and socially advantageous.