Europe 2025: industry highlights

The growth of renewables has been impressive. According to a study by the International Energy Agency (IEA), nearly 940 gigawatts (GW) of renewable power will be added globally each year starting in 2030, with solar energy making up the majority. Eighty percent of the renewable generation capacity deployed between 2024 and 2030 will be photovoltaics (PV). Even as the energy crisis subsides, renewable energy will continue to lead the global expansion of generation capacity.

Global growth can largely be attributed to falling solar power prices. According to a study by the International Renewable Energy Agency (IRENA), in 2023, solar energy was 56% cheaper than even the cheapest fossil power source.

The costs of PV combined with battery storage systems are also competitive. An analysis by Fraunhofer Institute for Solar Energy Systems (ISE) found that in 2024, the levelized cost of electricity for the combination of PV and storage systems in the utility-scale segment in Germany was between around 6 and 11 euros per kilowatt hour (kWh), while that of coal or gas-fired power plants was between around 15 and 33 euros per kWh.

The widespread deployment of renewable energy generation is driving the necessary transformation of the energy system. To accommodate the increasing volume of power from intermittent renewable sources, we will need smart energy infrastructure solutions, particularly in energy storage and smart power grids.