The COVID-19 pandemic strained our supply chains and disrupted investment plans. The energy crisis unsettled our balance of power and compelled the EU to reconsider its energy security strategy. Meanwhile, increasing competition from China and the US in clean energy technologies has served as a stark reminder that a decarbonised economy depends on a competitive domestic industry.
Despite the roller coaster, the European Union remains committed to a decarbonised future, with ambitious climate targets set for the coming decades. One of the core challenges now is to get industry on board while ensuring they can keep a competitive edge in Europe.
Aiming for carbon neutrality by 2050 and a 55% emissions reduction by 2030, the urgency for decarbonisation and electrification is clear. Encouraging progress has been made over the past year. In 2023, two-thirds of the EU’s electricity came from clean energy sources, with nuclear contributing 23% and renewables 45%. In 2024, this figure continued to increase with a total share of clean electricity reaching nearly 75%.
Yet, the climate clock is ticking faster. The need to continue zeroing in on our decarbonisation targets, while also ensuring Europe’s industrial competitiveness and energy security in a new geopolitical order, has never been clearer.
Concerningly, Europe’s electricity demand keeps stagnating, partly because of increased energy efficiency but primarily due to decreasing demand driven by Europe’s economic decline – an issue that is now at the top of the agenda in a post-elections Brussels.
To zero in on a decarbonised, secure and competitive future, ELECTRIFICATION IS THE WAY. This calls for urgent action to safeguard investor certainty, boost industrial demand for electricity and reinforce Europe’s power grid.
The Power Barometer 2024 takes stock of these key developments by presenting a comprehensive, data-driven review about the ongoing energy transition and what it will take to achieve a secure and sustainable energy future for Europe.
