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The European Union’s renewable energy transition reached a historic milestone in 2025, driven by an unprecedented expansion of solar power and a massive spike in electric vehicle (EV) adoption. According to the latest quarterly market reports, the bloc is successfully stabilizing its energy markets while rapidly accelerating its green infrastructure.
Solar energy was the undisputed star of the year. Total solar generation hit a new record high of 275 Terawatt-hours (TWh), marking an 18% increase from the previous year. Offshore wind also saw steady growth, rising by 4% to add an additional 3 TWh to the grid. This surge in generation is backed by massive infrastructure growth. The EU added nearly 70 gigawatts (GW) of new renewable capacity in 2025. Solar installations accounted for the vast majority of this boom, contributing 56 GW of new capacity, while onshore and offshore wind combined for an additional 13 GW.
Matching the rapid expansion of green power is electrical vehichles market. The bloc saw 2.89 million new EVs sold in 2025, a record-breaking 31% increase from 2024. This continuing momentum means yearly EV sales have nearly tripled (+177%) since 2019. By the fourth quarter of 2025, EVs commanded a 22% market share in the EU, more than triple the 7% market share seen in the United States during the same period.
While green tech flourished, broader energy markets showed continued signs of recovery and stabilization following the 2022 energy crisis, despite slight upticks in demand and pricing due to colder winter temperatures.
In the electricity sector, the European Power Benchmark averaged 85 €/MWh, a 9% increase from 2024 but still significantly lower (-14%) than 2023 levels. Prices varied wildly across Member States, with Finland enjoying a low yearly average of 41 €/MWh, while Italy faced averages of 116 €/MWh. Electricity consumption crept up by 1% due to a colder winter, though overall demand remains 2% below the pre-crisis averages of 2019–2022.
The gas market followed a similar stabilizing trend. Wholesale gas prices averaged 36 €/MWh, a slight 5% increase over 2024 sparked by the halt of Russian pipeline exports via Ukraine early in the year. However, this remains 22% lower than 2021 prices. Retail gas prices leveled out at an average of 109 €/MWh. Gas consumption saw a minor rebound to 339 billion cubic meters (bcm), a 2% increase from 2024. Despite the uptick, consumption remains well below the levels seen prior to the steep declines of 2022.
The regulatory mechanics behind rapid solar integration, the economic stabilizing factors learned from the European energy crisis, and the infrastructure frameworks needed to scale high-voltage transmission networks to support electric vehicle adoption will be primary areas of analysis at next years Go Net Zero Central and Eastern Europe Summit
Kořensko hydroelectric power plant is currently undergoing the largest modernization in its 34-year history. Operated by ČEZ as part of the Vltava cascade, the multi-million-crown overhaul will replace core machinery across both of its turbine units, resulting in safer, greener, and significantly more efficient operations by next spring.
Enefit, the electricity subsidiary of Estonia's Eesti Energia, has officially opened the Strzałkowo solar park in central Poland. The newly launched facility marks a major milestone for the company, standing as its largest single renewable energy project in the Polish market to date.
The Strzałkowo facility boasts an impressive installed capacity of 45 megawatts (MW). Operational estimates suggest the site will generate approximately 45 gigawatt-hours (GWh) of clean electricity annually.
ORLEN Group has just secured a landmark deal to acquire a 216 MW hybrid renewable energy complex in Kazimierz Biskupi, marking a significant milestone in Poland’s green energy transition. By pairing a large-scale solar farm with wind turbines, the project aims to power nearly 143,000 households annually.