Wood Mackenzie projects that renewable energy will meet 53% of Europe’s power supply in 2030. If Europeans deliver their individual National Energy and Climate Plans, sustainable energy will command the electricity market.
Indeed, Europe appears to be on track to meet the goals that have been set. Some projection shows the UK leading in terms of surpassing its goal, while France seems to be lagging the most.
Electricity generation from renewable energy exceeded production from coal in Europe in 2018. Wood Mackenzie reports that in 2018, one-third of European power was supplied from renewable sources. “Wind energy was the largest single low-carbon producer, accounting for around 12% of overall supply in the region. Solar power accounted for 4% of supply.”
There remains a need for vigilance and tenacious growth, as pointed out by Peter Osbaldstone, Wood Mackenzie Research Director, “Renewables are on track to account for most of Europe’s power supply within ten years and over 60% of the market by 2040. Despite the success of wind and solar, European governments, regulators and investors must continue to work hard towards climate-energy goals.” Osbaldstone added: “Carbon-intensive sources of power will be ruled out by policy if they cannot be priced out by markets.”
It is nice to hear that policy shifts and support the market to clean energy.
European power markets continue to shift away from the coal industry due to government-mandated phaseouts, low renewable energy prices, and low gas prices. Nuclear remains the region’s single largest source of power, but it will lessen as older reactors retire.
Wood MacKenzie reports that although gas’s contributions will rise as coal and nuclear diminish, the combined supply of wind and solar will eventually rival gas. The projection is that the wind industry alone will far exceed gas in electricity generation by late in the next decade.