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European Energy Transition: The State of Renewables in 2025

Published on 16 December 2025

The year 2025 marks a definitive turning point in the European energy landscape. Just three years ago, the continent was reeling from the shock of the energy crisis triggered by the war in Ukraine. Prices skyrocketed, factories closed, and the vulnerability of a fossil-fuel-dependent economy was laid bare for all to see.

Today, the picture is radically different. Sustainable energy is no longer an "alternative" source; in many member states, it has become the primary source. The transition has shifted from a moral imperative to a cold, hard economic necessity.

The Solar and Wind Boom

The statistics for 2025 are staggering. Solar photovoltaic (PV) capacity across the EU has nearly doubled since 2022. Driven by both utility-scale farms in Spain and rooftop installations in Germany and the Netherlands, solar is now the cheapest form of electricity in history.

Wind power, too, has seen a resurgence. The North Sea has effectively become Europe's "green power plant." New offshore wind farms, utilizing turbines the size of skyscrapers, are delivering consistent baseload power.

  • Cost Efficiency: The Levelized Cost of Energy (LCOE) for renewables has dropped below that of coal and gas, even without subsidies.
  • Energy Security: Every gigawatt of renewable capacity installed is a step away from imported volatility.

The Challenge of Intermittency

However, the "dunkelflaute"—periods with no sun and little wind—remains the critic's favorite argument. The grid of 2025 is being forced to adapt. We are seeing massive investments in:

  1. Battery Storage: Utility-scale battery parks are popping up across the continent to store excess solar energy generated at noon for use in the evening peak.
  2. Interconnectivity: The EU is finally treating its grid as a single organism. When the wind blows in the North Sea, that power is increasingly able to reach industrial centers in the south.

The Economic Impact

The green transition is reshaping the labor market. The demand for solar installers, wind turbine technicians, and heat pump engineers has outstripped supply. The "Green Collar" workforce is becoming a dominant sector of the economy.

Furthermore, energy-intensive industries are adapting. Green steel plants, powered by hydrogen and renewables, are no longer pilot projects but are entering commercial production.

Conclusion

The journey is far from over. Permitting bottlenecks still slow down projects, and the grid infrastructure needs trillions in investment. But 2025 proves that a renewable-powered Europe is not a utopia—it is an operational reality. The question is no longer if we can transition, but how fast we can finish the job.

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European Energy Transition: The State of Renewables in 2025 | EU Referendum Campaign