Europe sees “unprecedented” collapse in coal and gas generation

Last year saw fossil generation fall a record 19% in Europe, leading to it to account for less than a third of the EU’s electricity mix for the first time.

Ember, in its European Electricity Review, delved into the full-year electricity generation and demand data across all of the EU-27 countries. From this, it was able to set out how the EU accelerated its shift away from fossil fuels in 2023 with record falls seen in coal, gas and as a result, emissions.

Renewables were able to hit a record share of 44% – the first time they have cleared 40% in Europe’s energy mix. Wind and solar were the main drivers behind this, accounting for a record 27% of EU electricity in 2023. Each achieved their largest ever annual capacity additions, with wind surpassing gas for the first time.

A fall in electricity demand was also a reason behind the reduction in fossil fuel generation, with demand dropping 3.4% in 2023 compared to 2022, and working out around 6.4% lower than 2021 levels. As electrification increases, it can be expected that this trajectory will not continue and such rates of falling demand will not be repeated.

This now means renewables expansion must keep pace as demand increases to ensure that fossil fuels can be cut down at the speed needed to deliver on the EU’s climate targets. Storage and demand side response will also be crucial elements in deciding the power system of the future.

Ember’s Europe Programme Director, Sarah Brown, warned it is not a time to get complacent, calling for a “laser focus” on the rapid deployment of wind, solar and flexibility to build a system that is free of fossil fuels.

Brown continued: “The EU’s power sector is in the middle of a monumental shift. Fossil fuels are playing a smaller role than ever as a system with wind and solar as its backbone comes into view. The energy crisis and Russia’s invasion of Ukraine did not lead to coal and gas resurgence — far from it. Coal is nearing phase-out, and as wind and solar grow, gas will be next to enter terminal decline.”

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