Jun 25, 2025
The EU energy sector anticipates that 70% of its electricity will come from renewable sources by 2030.
According to the first Regional Energy Transition Outlook by the International Renewable Energy Agency (IRENA), doubling the annual additions of renewable power capacity to 122GW by 2050 is essential for the European Union's (EU) energy and climate goals. IRENA released the report in collaboration with the European Commission (EC).
The report forecasts that by 2030, the EU power sector could derive 70% of its electricity from renewable sources, increasing to nearly 90% by 2050. Achieving this transition necessitates an estimated investment of €5.6 trillion ($6.4 trillion) by 2050, particularly for power sector capacity and infrastructure, which represents almost a 50% rise from current levels, averaging €220 billion annually.
IRENA's director-general, Francesco La Camera, remarked that investing in the EU energy transition is a wise choice. He stated that the EU's economy could grow by 2% yearly until 2050 and create nearly eight million jobs in the energy sector within a decade. Focusing on low-cost renewables can enhance energy independence and provide affordable, sustainable energy to industries, households, communities, and citizens across the EU.
Modern infrastructure investment is crucial for keeping electricity costs down, as expanding renewables generally leads to lower wholesale prices. A fully decarbonized energy system could offer improved price stability, with total investments for the EU's energy transition expected to reach €1 trillion annually by 2050, roughly 6% of the EU's GDP last year.
Despite the progress, the deployment of renewable technology is not on track to meet the necessary targets. The IRENA report urges an increase in renewable energy shares, aiming for 42.5% of Gross Final Energy Consumption by 2030 through faster electrification and direct renewable use. It calls for a notable rise in wind and solar capacity to at least 1100GW, 46GW of battery storage, and 100 million electric vehicles by 2030, along with the creation of regulatory and investment frameworks for hydrogen hubs and large-scale electrolysis.
EU Energy and Housing Commissioner Dan Jørgensen stated that the report offers a clear direction for the energy transition and will assist in implementing their Action Plan for Affordable Energy, which outlines an ambitious strategy to reduce energy costs while establishing a clean, competitive, and secure Energy Union.
The report forecasts that by 2030, the EU power sector could derive 70% of its electricity from renewable sources, increasing to nearly 90% by 2050. Achieving this transition necessitates an estimated investment of €5.6 trillion ($6.4 trillion) by 2050, particularly for power sector capacity and infrastructure, which represents almost a 50% rise from current levels, averaging €220 billion annually.
IRENA's director-general, Francesco La Camera, remarked that investing in the EU energy transition is a wise choice. He stated that the EU's economy could grow by 2% yearly until 2050 and create nearly eight million jobs in the energy sector within a decade. Focusing on low-cost renewables can enhance energy independence and provide affordable, sustainable energy to industries, households, communities, and citizens across the EU.
Modern infrastructure investment is crucial for keeping electricity costs down, as expanding renewables generally leads to lower wholesale prices. A fully decarbonized energy system could offer improved price stability, with total investments for the EU's energy transition expected to reach €1 trillion annually by 2050, roughly 6% of the EU's GDP last year.
Despite the progress, the deployment of renewable technology is not on track to meet the necessary targets. The IRENA report urges an increase in renewable energy shares, aiming for 42.5% of Gross Final Energy Consumption by 2030 through faster electrification and direct renewable use. It calls for a notable rise in wind and solar capacity to at least 1100GW, 46GW of battery storage, and 100 million electric vehicles by 2030, along with the creation of regulatory and investment frameworks for hydrogen hubs and large-scale electrolysis.
EU Energy and Housing Commissioner Dan Jørgensen stated that the report offers a clear direction for the energy transition and will assist in implementing their Action Plan for Affordable Energy, which outlines an ambitious strategy to reduce energy costs while establishing a clean, competitive, and secure Energy Union.