The European Electricity Review 2026, published by Ember, analyses full-year electricity generation and demand data for 2025 across the EU-27 countries. The report highlights a significant milestone in the region’s energy transition: for the first time on record, wind and solar generated more electricity than fossil fuels. This transition is underpinned by record solar growth and a continued decline in coal, although the bloc remains significantly dependent on fossil gas, which drove price spikes during the year.

Chapter 1: 2025 at a glance

In 2025, the EU’s transition to clean power reached a tipping point as wind and solar generated 30.1% of EU electricity (841 TWh), while all fossil power sources generated 29.0% (809 TWh). This represents a substantial shift from 2020, when the wind and solar share stood at 19.7%. For the majority of EU countries, wind and solar have become central to the electricity mix; they generated more power than fossil sources in 14 of the 27 EU member states. Notably, the Netherlands and Croatia achieved this milestone for the first time in 2025, driven by strong solar and wind growth.

Solar energy experienced astounding growth, reaching a record 369 TWh in 2025, a 20.1% increase compared to the previous year. This growth is equivalent to the annual production of three French nuclear power plants. Solar capacity expanded by 65.1 GW, split nearly equally between utility-scale solar farms and new rooftop installations. Solar shares rose above 20% in Hungary, Cyprus, Greece, Spain, and the Netherlands. Furthermore, in June 2025, solar became the largest EU power source for the first time in a single month.

Total renewables provided nearly half of EU power (47.7%, or 1,331 TWh). However, unusual weather conditions presented challenges. A dry and low-wind first quarter led to a 12% drop in hydroelectricity and a 2% decline in wind production. While a larger wind fleet was commissioned, it was insufficient to compensate for exceptionally low wind speeds early in the year. Conversely, solar thrived due to irradiation being 6% higher than the five-year average, particularly in Northern Europe, where it helped balance the drop in wind generation.

Fossil gas generation increased by 8% (+34 TWh) compared to 2024, largely to compensate for reduced hydro output. This pushed the EU power sector’s gas import bill to €32 billion, 16% higher than the previous year. Coal continued its terminal decline, falling to a historic low of 9.2% of EU power. Coal generation is now highly concentrated, with Germany and Poland accounting for more than 74% of the EU’s coal-fired electricity.

Chapter 2: Early signs of the impact of batteries

High electricity prices were frequently driven by gas-heavy hours, particularly during morning and evening peaks. In 2025, the average cost of electricity from gas ranged between €101/MWh and €112/MWh. Conversely, hours with abundant solar and wind production pulled prices down. This creates a profitable opportunity for batteries to store clean power for use during fossil-reliant periods. Battery deployment accelerated significantly in 2025, with large-scale battery capacity exceeding 10 GW, more than double the capacity in 2023.

The report provides a case study of Italy, a battery leader hosting 1.9 GW of large batteries. In September 2025, these systems discharged an average of 1.1 GW during evening peaks, meeting 3% of demand. If Italy follows the trajectory of California—where battery capacity soared from 2 GW to 13 GW in four years and now meets nearly a fifth of evening demand—it could drastically reduce reliance on costly gas. Shifting solar or wind power via batteries in Italy is estimated to cost around €64/MWh, making it highly competitive against gas plants which averaged €111/MWh.

Batteries also play a crucial role in limiting the waste of clean power through curtailment. In 2025, Germany curtailed an estimated 9.6 TWh of wind and solar generation. The report suggests that if Germany’s announced battery pipeline of 10.5 GW/26.3 GWh had been in place, it could have avoided one-third of this curtailment. This would have saved approximately €0.8 billion by avoiding €613 million in redispatch costs and €219 million in gas purchases. The additional investment required is estimated at only €145 million per year over the technology’s lifetime.

Policy recommendations

To capture the full benefits of homegrown power, the report suggests several priority actions. Member states must implement rules for clean flexibility by removing legislative barriers to battery deployment, such as double grid charging, and reward consumers for demand flexibility. Accelerating permitting for cross-border power lines and securing finance for a stronger grid are also essential components of the proposed Grids Package.

The report also recommends boosting smart electrification in transport, heating, and industry, which could halve fossil import dependence. This includes supporting investment in heat pumps and rebalancing taxes and energy costs. Finally, to improve energy security, the EU must prioritise the 2027 ban on Russian gas and LNG imports, while securing power lines against sabotage and physical attacks through collaboration between government and military stakeholders.