Solar power was the clear standout performer in Europe’s power sector in 2025, reaching 12.5% of the EU energy mix, the highest share recorded to date, according to new analysis from Eurelectric.
Eurelectric, which represents the interests of the European electricity industry, described 2025 as a ‘turning point’ for Europe’s power sector, with record solar growth (total solar generation of more than 340 TWh) reducing reliance on fossil fuels and helping to contain emissions.
While emissions from the EU’s power sector stood at around 45% of 1990 volumes, indicating ‘steady progress’ in decarbonisation, momentum towards the bloc’s 50% renewables threshold slowed, indicating that ‘balancing rapid green growth with market stability and demand recovery remains a challenge’, Eurelectric noted.
Solar offsets hydro and wind
Solar output rose by 60 TWh compared to the previous year – the equivalent of Portugal’s annual electricity demand – which offset a 13% decline in hydroelectric output, and a 4% decline in wind, the study noted. Nuclear output, meanwhile, remained broadly unchanged, holding on to around 24% of Europe’s power generation last year.
“Renewables are reducing Europe’s exposure to fossil fuel prices, but weak electricity demand risks slowing investments,” commented Kristian Ruby, secretary general at Eurelectric. “Stimulating demand is key to stabilising markets, supporting industry and keeping decarbonisation on track.”
Electricity prices
Electricity prices stood at €88 per MWh in 2025, which was slightly above 2024 levels, although lower than in 2023. This was driven by higher prices in the first half of the year, due to weaker wind and hydro output, before prices fell in the second half as a result of strong solar generation and lower gas prices.
Electricity price volatility was also evident, with prices exceeding €150 per MWh for 9.3% of hours, while negative prices were also recorded during 3.3% of hours.
In summary, Eurelectric said that Europe remains ‘firmly on the path to greener energy’, with electrification playing a key role, however greater acceleration is needed to unlock its full potential. Read more here.
