Presentation
A key element in achieving carbon neutrality and European competitiveness, the transition of Europe's electricity system has been proceeding apace since the energy crisis and the implementation of the RePowerEU strategy. Despite recent progress, the targets set for 2030 remain highly ambitious and require a number of major challenges to be met, linked to the deployment and integration of renewable electricity production, alignment with the green reindustrialization agenda and political and public ownership of this transition, which was put to the test during the recent energy crisis.
Key Messages
- By 2023, low-carbon energies (renewable and nuclear) accounted for two-thirds of the European electricity mix, leading to a 20% reduction in CO2 emissions due to the decline of coal power. At the same time, consumption has fallen markedly as a combined result of sufficiency and efficiency policies, along with the phenomenon of demand destruction in the energy sector.
- The EU is aiming to reduce the share of fossil fuels power generation to less than 20% by 2030, while achieving 70% renewable electricity. This will require a doubling of the rate of wind power installation and the perpetuation of the record expansion of solar capacity achieved in 2023.
- In a context of intense international competition, it is essential to clarify the position of renewable energy in Europe’s industrial strategy: while solar energy is currently benefiting from increasing political support, robust measures are required to protect the European wind industry, without neglecting to consider the challenges associated with the massive deployment of network infrastructure.
- The transition also necessitates the continuation of electricity market design reforms, with a delicate balance to be struck between the need to meet the challenges of integrating renewable energies through increased flexibility, and the ability to ensure competitive and accessible prices for the range of different consumers (particularly industry and households).
- At the political level, the energy crisis has reinforced the need for a strong strategic vision and narrative on the role of the power system transition as a key factor for European competitiveness and resilience, while also paying attention to the need for strengthened local ownership and acceptance of projects.
