Last year marked a turning point for solar power in the European Union, according to data from Eurelectric. Electricity generation from solar installations surged to more than 340 TWh, lifting solar’s share in the EU energy mix to a record 12.5 % and contributing to a reduction of overall emissions to around 45 % of 1990 levels.
Despite this strong expansion and the continued decline in fossil fuel dependence, progress toward broader renewable energy targets has begun to lose momentum. The main factor behind this slowdown is subdued electricity demand, which has limited the pace at which renewables can further expand their role in final energy consumption.
Total electricity use in 2025 remained largely flat compared with 2024 and was still roughly 7 % below consumption levels seen in 2021. This stagnation has reduced the pull from the demand side, even as new renewable capacity continues to come online across the EU.
Solar generation increased by more than 60 TWh year-on-year, a volume roughly equivalent to Portugal’s entire annual electricity consumption. This rapid growth helped offset weaker output from other renewable sources, as hydropower production fell by about 13 % and wind generation declined by 4 % compared to the previous year.
The strong solar performance also played a role in further curbing fossil-fuel generation. Low-carbon electricity production continued to rely heavily on nuclear power, which accounted for a significant 24 % share. Nuclear output remained stable throughout 2025, maintaining its role as a dependable source of baseload electricity for the European energy system.
Wholesale day-ahead electricity prices averaged around €88/MWh during the year. This level was lower than in 2023 but slightly higher than in 2024. Prices were elevated in the first half due to weaker wind and hydropower output, before easing in the second half as solar generation increased and natural gas prices declined.
Even with more moderate average prices, market volatility persisted. Negative electricity prices occurred during approximately 3.3 % of all hours, while price spikes above €150/MWh were recorded in 9.3 % of hours.
Eurelectric analysts say these developments underline the growing need for greater system flexibility, including storage, demand response and smarter grids. At the same time, they point to insufficient electricity demand and slow overall electrification as the most pressing structural challenges holding back faster progress in the EU’s energy transition.