Europe: A new report from Montel EnAppSys reveals that Europe’s decarbonisation progress slowed in 2025, despite record solar power output. Fossil fuels accounted for 27 % of total power generation last year, up from 2024, while renewables’ contribution fell to 73 %.
The first quarter of 2025 saw the lowest renewable generation since 2023, driven by weak wind and hydroelectric output. Hydropower fell 11 % to 427.4 TWh, largely due to extremely low rainfall that left reservoirs depleted. Montel EnAppSys notes that it remains unclear whether this is a one-off event or a sign of longer-term climate impacts.
Solar output, however, reached record levels of 284.5 TWh, 13.5 % higher than in 2024. Jean-Paul Harreman, Director at Montel EnAppSys, said: “Despite strong solar generation, low output in the first quarter led to an overall decline in renewables. Fossil fuels were mixed: coal and lignite fell to record lows, but gas generation rebounded compared with 2023 and 2024.”
Negative power prices were also a major feature. More than 500 hours of below-zero prices were recorded across six European countries, worsened by rising wind and solar capacity, limited storage and inflexible demand. SE2 in Sweden saw 679 hours of negative pricing, followed by the Netherlands, Germany and Spain.
The report warns that negative prices are likely to rise this year, especially in summer, while Dunkelflaute periods (times of low solar and wind output) in winter could trigger extreme price spikes. Offshore wind developments face delays, with 60% of projects stalled or cancelled in Germany, though new auctions in Poland (3.4 GW) and Ireland (900 MW) provide some optimism.
Source: Enlit
