Europe Renewable Energy Market

Europe Renewable Energy Market Overview

The Renewable Energy market industry is projected to grow from Significant Value in 2023 to Significant Value by 2032, exhibiting a compound annual growth rate (CAGR) of 8.00% during the forecast period (2024 - 2032). The rise in environmental consciousness and regulatory measures, coupled with the declining cost per kilowatt of electricity generated from renewable sources, are the main market drivers anticipated to propel the Renewable Energy market in Europe.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Renewable Energy Market Trends

• Growing adoption of green energy and rising public and private efforts to curb carbon emissions are driving the market growth

Various renewable energy sources, including wind, hydropower, solar, geothermal, and bioenergy, contribute to fulfilling approximately 7% of the global energy demand at present. This proportion is anticipated to witness significant growth shortly and drive the market CAGR. In 2022, the European Union achieved a 23.0% share of its gross final energy consumption from renewable sources, marking a 1.1 percentage point increase from the previous year. Directive 2023/2413 of the EU, aimed at promoting the utilization of energy from renewable sources, has raised the EU's renewable energy target for 2030 to 42.5%, with a future goal of reaching 45%. Additionally, the EU has set a common target of 29% for the use of renewable energy in the transport sector by 2030, encompassing various sources such as liquid biofuels, hydrogen, biomethane, and green electricity.

Furthermore, the European Union witnessed a reduction of 2.5% or 70 million tonnes in CO2 emissions. In the third quarter of 2023, greenhouse gas emissions in the EU economy were estimated at 787 million tonnes of CO2-equivalents, reflecting a 7.1% decrease compared to the same quarter in 2022. The European Climate Law has established a legally binding target of achieving net-zero greenhouse gas emissions by 2050. Additionally, the law includes an intermediate target of reducing net greenhouse gas emissions by at least 55% by 2030, relative to 1990 levels. Thus, driving the Renewable Energy market revenue.

Europe Renewable Energy Market Segment Insights

Renewable Energy Type Insights

The Europe Renewable Energy market segmentation, based on Type, includes Hydropower, Solar, Wind, and Others. The Wind Energy segment dominated the market. As the demand for dependable, cost-effective, environmentally friendly, and diversified electricity supply rises, governments and utilities nationwide are increasingly turning to wind power as a viable solution. Germany, Spain, and the United Kingdom lead the European region in installed wind power capacity, collectively reaching 63.760 GW in 2021.

This capacity is sufficient to power approximately 3.4 million households in these countries. Additionally, the cumulative wind power capacity across the European Union reached 235.950 GW as of 2021. In May 2021, RWE and BASF announced plans to invest USD 4.9 billion in offshore wind power projects. As part of this initiative, RWE aims to construct a 2 GW offshore wind park by 2030 to supply energy to BASF's Ludwigshafen chemical complex.

Figure 1: Europe Renewable Energy Market, by Type, 2023 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Renewable Energy Country Insights

The German government has enacted several laws to promote the development of renewable energy sources in the country, resulting in a significant contribution from solar technology to the power generation mix. In July 2021, the European Union introduced new legislation aimed at achieving a 55% reduction in emissions of greenhouse gases over the next decade, including measures to levy taxes on foreign companies for their environmental impact. The plan also entails the expansion of solar and wind power in the North Sea region to decrease greenhouse gas emissions in the power sector.

Furthermore, as of 2021, Germany's cumulative solar photovoltaic capacity stands at 58.728 GW, marking an increase of approximately 5 GW compared to the previous year. In 2022, Germany's domestic greenhouse gas emissions were estimated at 745.6 MtCO2-eq, representing a 1.9% decrease compared to 2021 and a 6.2% decline from pre-pandemic levels. Germany reported 136 single policies and measures (PaMs) in 2023, a 74% increase from 2021. Through the implementation of these PaMs, Germany anticipates emission reductions of 104.7 MtCO2-eq by 2030 and 180.0 MtCO2-eq by 2040.

Figure 2: EUROPE RENEWABLE ENERGY MARKET SHARE BY COUNTRY 2023 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Renewable Energy Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the Renewable Energy market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Renewable Energy industry must offer cost-effective items.

Major players in the Renewable Energy market are attempting to increase market demand by investing in research and development operations, including Enel Green Power S.p.A., ContourGlobal PLC, Acciona S.A., Abengoa SA, Électricité de France S.A., Andritz AG, Hanwha Q Cells Co., Ltd., Repsol S.A.

Key Companies in the Renewable Energy market include

• Enel Green Power S.p.A.
• ContourGlobal PLC
• Acciona S.A.
• Abengoa SA
• Électricité de France S.A.
• Andritz AG
• Hanwha Q Cells Co., Ltd.
• Repsol S.A.

Europe Renewable Energy Industry Developments

September 2022: Orsted AS forged an agreement with Ostwind, a developer specializing in wind and solar PV projects across Germany and France, to acquire full ownership of OSTWIND Erneuerbare Energien GmbH, OSTWINDpark Rotmainquelle GmbH & Co. K.G., OSTWIND International S.A.S., and OSTWIND Engineering S.A.S.

September 2022: Mercedes-Benz, a renowned German luxury and commercial vehicle manufacturer, announced plans to construct a wind farm in Lower Saxony, Germany, by 2025. The facility is projected to generate 100 megawatts of electricity, meeting over 15% of the automaker's annual energy requirements in Germany.

In October 2024, Iberdrola, a Spanish energy company, acquired EOLIA Removable, which is one of the major players in the Spanish wind industry. The acquisition, which was reported to be around € 2.5 billion, strengthens Iberdrola’s stance on renewable energy generation and helps the company achieve a step forward towards the target of 60 gigawatts (GW) total installed capacity by the year 2030.

ENGIE acquired Equinor’s Offshore Wind in Europe in September 2024 as the company seeks to expand its offshore wind capacity in the North Sea and increase competition to meet EU green Wind energy targets.

The provision of funding from the European Hydrogen Bank created from the EU Emissions Trading System (ETS) Innovation Fund amounted to 720 million Euros and supported seven projects of hydrogen renewable energy. In December 2024, the European Commission announced a significant partnership that focuses on the development of projects that leverage renewable hydrogen technologies. Such initiative has the character of cooperation of industry with the state, and its objective is to use the EU’s Innovation Fund to develop the endorsed projects.

In November 2024, TotalEnergies reached a collaboration with European Energy and agreed to develop 4 gigawatts (GW) of renewable energy projects in Europe. This cooperation is consistent with TotalEnergies’ plans to expand its engagement in producing renewable energy, including its development of broader solar and wind facilities. The joint venture shall greatly expedite the implementation of green energy diversification activities.

In October 2024, Italian company Eni, which operates in the international energy market, announced a joint venture with Galileo in Italy. The memorandum envisages the realization of eight solar photovoltaic (PV) projects that will be constructed with a total of 1.1 GW of solar capacity. This step also meets Eni’s expansion goals to develop its emerging renewable energy segment and support the energy transition within Italy.

In January 2022, The Polish government declared that construction would recommence on the country's largest Hydroelectric Plant in Młoty (750 MW) 33 years after it was halted and 50 years after the start of its construction. 

During the year 2021, approximately 18% of Russia's power was generated through the country's hydroelectric power plants, and there is still a considerable amount of unexploited potential for even greater production. 

In November 2022, Photovoltaic plant applications were submitted to Albania's Ministry of Infrastructure and Energy for the construction of three plants with a combined power of 151 MW, the biggest being 93 MW.

In November 2022, Poland initiated operations for its first floating photovoltaic array on an artificial reservoir, which features 110 bifacial modules with a total capacity of 49.5kW.

63.0% of the electrical energy utilized in the German Midwest in the first quarter of this period is renewable, as per the published data from the Destin 2024 report. On the other hand, renewable electricity generation saw an unprecedented increase as the production in the first quarter reached an astounding record proportion of 58.4 percent while domestic power generation homes dropped by 7.5 percent. Wind energy remained the most important source of generation in the first quarter of the year. Domestic wind generation increased by 12 percent from the previous year and was responsible for 38.5 % of total electricity consumption during this period. Poland became the worl'd leading country in wind energy.

In September 2022, the German luxury and commercial vehicle manufacturer Mercedes-Benz revealed plans to construct a wind power generating facility in Niedersachsen, Germany, by 2025 that can produce Wi 100 Mw of electricity, which translates to around 15% of the German luxury automaker's yearly consumption in Germany.

Europe Renewable Energy Market Segmentation

Renewable Energy Type Outlook

• Hydropower
• Solar
• Wind
• Others

Renewable Energy Regional Outlook

• Europe
  • Germany
  • France
  • UK
  • Italy
  • Spain
  • Sweden
  • Denmark
  • Luxembourg
  • Norway
  • Austria
  • Rest of Europe