Renewables Overtook Fossil Fuels as #1 Power Source in 2020: European Commission Report

The European Commission recently released its State of the Energy Union Reports for 2021 which shows that renewables overtook fossil fuels as the number one power source in the EU for the first time in 2020, generating 38% of electricity, compared to 37% for fossil fuels

Kadri Simson, European Commissioner for Energy (Estonia)

Kadri Simson, European Commissioner for Energy (Estonia). Credit: EU Commission website

The European Commission recently released its State of the Energy Union Reports for 2021. The report takes stock of the progress that the EU had made in delivering the clean energy transition nearly two years after the launch of the European Green Deal. While there are a number of encouraging trends, greater efforts will be required to reach the 2030 goal of cutting net emissions by at least 55% and achieving climate neutrality by 2050, and the data will need to be analysed carefully next year for more long-term post-COVID trends.

The report shows that renewables overtook fossil fuels as the number one power source in the EU for the first time in 2020, generating 38% of electricity, compared to 37% for fossil fuels. To date, 9 EU Member States have already phased out coal, 13 others have committed to a phase-out date and 4 are considering possible timelines. Compared to 2019, greenhouse gas emissions in 2020 fell by almost 10%, an unprecedented drop in emissions due to the COVID-19 pandemic, which brought overall emission reductions to 31%, compared to 1990.

Primary energy consumption declined by 1.9% and final energy consumption by 0.6% last year. However, both figures are above the trajectory required to meet the EU’s 2020 and 2030 targets. Efforts to address this issue need to continue at the level of both Member States and the EU. Due to lower energy consumption overall, fossil fuel subsidies dropped slightly in 2020. Renewable energy and energy efficiency subsidies both increased in the same year.

This year’s report is also published against the backdrop of an energy price spike across Europe, and around the world, driven largely by increasing gas prices. While this situation is expected to be temporary, it puts into focus the EU’s dependence on energy imports, which has increased to the highest level in 30 years, and the importance of the clean energy transition to increase the EU’s energy security. Energy poverty affects up to 31 million people in the EU according to the latest data, and this issue will remain in sharp focus in light of the economic challenges of COVID-19, and the current price situation.

Check our event – Carbon Trading and Markets 2021

Event Search