According to Eurelectric, the association representing the European electricity sector, renewable energy sources accounted for 48% of the EU’s electricity generation in 2024, with nuclear energy contributing 24% and fossil fuels reaching a record low of 28%. Eurelectric hailed 2024 as a significant year for Europe’s electricity sector, noting that the growth in renewable energy led to a 59% reduction in emissions compared to 1990 levels, marking the cleanest electricity generation mix in the EU’s history.
The rise in renewable energy also resulted in a record 1,480 instances of negative electricity prices, with at least one bidding zone experiencing negative prices 17% of the time. The average day-ahead wholesale electricity price across the EU fell by 16% compared to 2023, dropping to 82 euros/MWh. However, there were price spikes in the last quarter of the year due to a combination of rising gas prices, high winter demand, reduced solar output, and low wind activity.
Eurelectric also reported that electricity demand remained subdued, increasing by less than 2% compared to 2023, but still staying below pre-crisis levels, largely due to weak industrial consumption. The association stressed the importance of prioritizing industrial electrification, emphasizing that the Clean Industrial Deal presents a key opportunity to promote electrification through measures like creating an electrification bank, establishing electrification-accelerated zones, and implementing de-risking mechanisms for long-term power purchase agreements.
