
The EU achieves the cleanest energy generation mix in history
In 2024, emissions in Europe were reduced by 59% compared to 1990 levels, thanks to the increase in renewable energies, according to data from Eurelectric.
The EU has achieved the cleanest energy generation mix in history. Negative prices set another record, occurring 1,480 times. Energy demand has not recovered since the crisis, mainly due to low industrial consumption.
According to Eurelectric, looking ahead, incentives to electrify industry will be crucial for achieving a competitive decarbonized economy.
Record low emissions
The year 2024 marked the lowest level of emissions from the EU’s energy sector, with a 13% decrease compared to 2023.
Renewables contributed 48% of the EU power generation mix, followed by nuclear at 24% and fossil fuels at 28% – the lowest share ever. While nuclear remained the single leading technology in producing power, wind kept its lead over natural gas from the past year.
Electricity from hydro and solar PV remarkably increased by more than 40 TWh year-on-year. This corresponds to half of the annual power demand in Belgium and the whole annual demand in Denmark.
Energy demand does not recover
Energy demand grew by less than 2% this year compared to 2023, but it remains below pre-crisis levels. Part of this reduction is due to higher energy efficiency and energy savings, but more than 50% of this decrease is due to industrial slowdown.
In Germany, industrial energy consumption decreased by 13% in 2023 compared to 2021, and it is expected to have fallen even further in 2024, as industrial production decreased by 4% year-on-year.
Driving industrial electrification must be a priority for the new Commission. The Clean Industrial Deal is the ideal opportunity to provide new incentives for electrification, such as creating an electrification bank, areas for accelerated electrification, and risk-reduction mechanisms for long-term power purchase agreements.
Electricity prices fall
The EU ends the year with lower average electricity prices. In 2024, daily wholesale market prices dropped to €82/MWh, compared to €97/MWh in 2023.
This average was even lower (€76/MWh) until the last quarter of the year, when a rise in gas prices, high winter demand, solar energy shortages, and windless days caused prices to spike, leading to several price peaks in Germany, Hungary, Romania, and Sweden, to name a few.
At the same time, negative prices set a new record this year, as they were recorded 17% of the time in at least one supply zone.
Cillian O'Donoghue, Director of Policy at Eurelectric, highlighted that “Eurelectric’s data once again demonstrates that investing in more renewable generation is the right path toward a more competitive and decarbonized economy, but it must be complemented with more firm and flexible capacity to balance its variability, limit dependence on expensive fossil fuels, and contain price spikes”.
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