Europe Energy Transition - Sectors and Companies Driving Development - 2025
Description
Europe Energy Transition - Sectors and Companies Driving Development - 2025
Summary
Europe’s energy transition is accelerating, with strong policy support driving record renewable growth, EV adoption, and emerging low-carbon hydrogen and CCUS activity. Despite momentum, the EU remains off track for 2030 climate goals due to slow progress in fossil phaseout, permitting delays, and investment barriers. This report delivers a clear overview of key technologies, policies, and market leaders shaping the region’s clean energy landscape.
Europe’s energy transition is advancing at pace, driven by ambitious policy targets, record renewable additions, and a strong investment pipeline. Yet, despite this momentum, the EU remains off track to meet its 2030 climate goals. By 2025, renewables will account for 58% of Europe’s power mix, with wind and solar leading growth. However, Europe as a whole is expected to exceed 50% renewable generation only by 2030. Energy storage is scaling fast, with capacity set to reach 85GW by 2030, while EV adoption continues to surge, backed by EU-wide targets for 100% zero-emission car sales by 2035. In transport, the EU’s SAF mandates are kicking in, requiring 2% blending by 2025 and scaling up through 2050, helping decarbonize the aviation industry. Europe remains a global leader in CCUS and low-carbon hydrogen project announcements. However, high costs, slow permitting, and ongoing policy uncertainty, especially around long-term price signals, pose barriers to final investment decisions. This report provides a comprehensive view of Europe’s transition technologies, policies, and project pipelines, offering critical insights for stakeholders navigating one of the world’s most active clean energy regions.
Key Highlights
Summary
Europe’s energy transition is accelerating, with strong policy support driving record renewable growth, EV adoption, and emerging low-carbon hydrogen and CCUS activity. Despite momentum, the EU remains off track for 2030 climate goals due to slow progress in fossil phaseout, permitting delays, and investment barriers. This report delivers a clear overview of key technologies, policies, and market leaders shaping the region’s clean energy landscape.
Europe’s energy transition is advancing at pace, driven by ambitious policy targets, record renewable additions, and a strong investment pipeline. Yet, despite this momentum, the EU remains off track to meet its 2030 climate goals. By 2025, renewables will account for 58% of Europe’s power mix, with wind and solar leading growth. However, Europe as a whole is expected to exceed 50% renewable generation only by 2030. Energy storage is scaling fast, with capacity set to reach 85GW by 2030, while EV adoption continues to surge, backed by EU-wide targets for 100% zero-emission car sales by 2035. In transport, the EU’s SAF mandates are kicking in, requiring 2% blending by 2025 and scaling up through 2050, helping decarbonize the aviation industry. Europe remains a global leader in CCUS and low-carbon hydrogen project announcements. However, high costs, slow permitting, and ongoing policy uncertainty, especially around long-term price signals, pose barriers to final investment decisions. This report provides a comprehensive view of Europe’s transition technologies, policies, and project pipelines, offering critical insights for stakeholders navigating one of the world’s most active clean energy regions.
Key Highlights
- In 2025, renewable technologies accounted for 58% of Europe’s total power capacity, with the share of renewable power generation projected to rise from 43% to 58% between 2025 and 2035. Nearly 100GW of thermal capacity is expected to be retired by 2035, but gas remains in the mix, with ~60GW of additions expected over the same period.
- While several countries are making strong progress, Europe as a whole is not expected to surpass 50% renewable generation until 2030.
- Europe’s energy storage capacity is expected to grow significantly, reaching almost 85GW by 2030, up from 25GW in 2025.
- Battery electric vehicles (BEVs) are projected to make up 82% of EU light vehicle sales by 2035.
- SAFs are gaining traction, supported by mandates under the ReFuelEU Aviation, which requires SAFs to make up 70% of aviation fuel by 2050.
- Europe is emerging as one of the most active regions globally for CCUS, expected to reach a maximum capture capacity of 311mpta by 2030.
- Considering projects with start years up to 2030, Europe has the largest low-carbon hydrogen project pipeline globally, with 22mtpa of expected capacity by 2030, of which 37% is already in post-feasibility.
- European climate targets, CO2 emissions, renewable energy potential, leaders in renewable energy, renewable energy policies, power consumption and demand, renewable power capacity and generation, decommissioning of thermal power, energy storage capacity, electric vehicle and hybrid vehicle sales, upcoming renewable refineries, biodiesel, ethanol, RD, SAFs, CCUS outlook, upcoming CCS projects, hydrogen policies, upcoming hydrogen capacity by stage, type and end use.
- Assess the current regional emissions, thermal and renewable capacity, and generation share, and identify which countries are driving the energy transition in Europe.
- Identify market trends within the industry, including expected 2030 capacities for a range of technologies.
- Identify who the leading countries and regional players are in renewable energy capacity and energy transition technologies such as hydrogen and CCUS.
- Understand the legislative framework laid out by the region’s governments and the European Commission aimed at accelerating the region's race to net-zero by 2050.
Table of Contents
40 Pages
- Executive Summary
- Sector grid and European leaders
- Power Outlook & Generation
- Global vs European CO2 emissions
- EU climate targets and policies
- Power capacity share outlook
- Power generation share outlook
- European countries’ renewable generation share
- Thermal power: decommissioning and emissions
- Major players in renewable power
- Energy Storage
- European energy storage and transmission systems outlook
- Europe’s largest upcoming energy storage projects and key policies
- Electric Vehicles
- European countries’ EV targets
- Growth in BEV sales
- Growth in charging infrastructure
- Renewable Fuels
- Renewable refineries
- Renewable fuels outlook: RD
- Renewable fuels outlook: SAFs
- Renewable fuels outlook: Ethanol and FAME Biodiesel
- Europe’s largest active and upcoming renewable refineries
- CCUS
- CCUS policies and funding
- European CCUS outlook
- European CCUS key facility industries
- Europe’s largest active and upcoming carbon capture and storage projects
- Hydrogen
- Key hydrogen policies
- European hydrogen capacity by development stage
- European hydrogen capacity by type
- Intended use sectors for low-carbon hydrogen
- Europe’s largest active and upcoming hydrogen projects by 2030
- List of Tables
- Sector grid and leaders
- Solar PV EPC providers and equipment manufacturers
- Wind power EPC providers and equipment manufacturers
- Europe’s largest upcoming energy storage projects
- European countries’ zero-emission vehicle sales targets and policy updates
- Europe’s largest active and upcoming renewable refineries
- Europe’s largest active and upcoming carbon capture projects
- Europe’s largest active and upcoming carbon storage projects
- Europe’s largest active and upcoming hydrogen projects by 2030
- List of Figures
- Annual CO2 emissions by world region, 1990-2023
- Europe power capacity share, 2015-2035
- Europe total power capacity share by technology type, 2025
- Europe total power capacity share by technology type, 2035
- Europe power generation share, 2015-2035
- Renewable power generation, 2015-2035
- Key Europen countries' renewable power generation share, 2025-2035
- Upcoming and decommissioning thermal capacity, 2025-2035
- European CO2 emissions by thermal power, 1990-2023
- Leading European players in solar PV capacity
- Leading European players in wind power capacity
- European energy storage capacity by technology, 2020-3030
- Europe transmission investment, 2022-2027
- European BEV sales forecast, 2020-2035
- European BEV % of LV sales, 2020-3035
- European sites with EV charging facilities in 2025
- Active and upcoming renewable refineries by country
- European renewable fuel expected 2030 capacity by refinery type
- European active and upcoming RD capacity, 2020-2030
- Top 10 European countries in RD production by expected 2030 capacity
- European active and upcoming SAF capacity, 2020-2030
- Top 10 European countries in SAF production by expected 2030 capacity
- European Ethanol production capacity, 2020-2030
- European FAME biodiesel production capacity, 2020-2030
- Max expected 2030 capture capacity by region
- Leading European countries by CCS capacity, 2020-2030
- European share of top 10 CCUS facility industries by 2030
- European top 10 facility industries by 2030 capacity
- Leading regions for active and upcoming low-carbon hydrogen capacity up to 2030
- European low-carbon hydrogen capacity by development stage, 2025-2030
- Leading European countries for blue and green hydrogen expected 2030 capacity
- Leading European countries for max blue and green hydrogen capacity by development stage
- Electrolysis capacity targets in Northwest Europe by 2030
- European target end-use sectors for low-carbon hydrogen
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