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| Fig. 1: Global Shares of Coal, Gas and Renewables. [1] (Image source: E. Daly) |
The European Union (EU) represents one of the largest energy markets in the world, with a diverse mix of consumption patterns driven by industrial activity, transportation, and residential demand. As the EU continues to pursue aggressive decarbonization targets under the European Green Deal, understanding its current energy balance is critical for planning a transition toward net-zero emissions.
Multiple sources are required to analyze this balance. According to BP, the EU's primary energy consumption in 2021 totaled approximately 60 exajoules (EJ). [1] This figure represents the total energy input to the system. This differs from Total Final Energy Consumption (TFEC) - the energy actually delivered to end-users - which was 22.1% supplied by renewables in 2021. [2] The difference between primary and final energy reflects the significant conversion and transmission losses within the EU energy system. [1,2]
The transition is most visible in the electricity sector. Data from Ember shows that in 2023, fossil fuel generation fell to a record low, accounting for only 33% of EU electricity production. [2] Conversely, generation from clean energy (renewables and nuclear) hit a record high, providing 68% of the EU's electricity, underscoring a rapid structural shift in this specific sector. [3]
Oil and natural gas remain the dominant contributors to EU energy consumption, together accounting for over half of total primary energy. [1] However, the share of renewables and nuclear energy continues to grow due to increasing electrification, carbon pricing, and renewable subsidies. Table 1 provides a detailed breakdown of the 2021 primary energy mix. [1]
However, the composition of the electricity sector shows a starkly different and more rapidly changing picture. In 2023, wind and solar combined produced a record 27% of all EU electricity, surpassing gas-fired generation (which fell to 15%) for the first time. [3] This growth in renewables, combined with the low-carbon baseload from nuclear power (23% of electricity in 2023), is the primary driver of the sector's decarbonization. [3] While the electricity sector is decarbonizing quickly, this progress is averaged out in the wider Total Final Energy Consumption metric, which includes the lagging transport and heating sectors, resulting in the more moderate 22.1% total renewable share. [2]
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| Table 1:Breakdown of EU Primary Energy Consumption (2021). [1] | ||||||||||||||||||||||||||||||||
Between 2010 and 2021, the EU primary energy consumption fell by 13.4% over 15 years and final energy consumption fell by 7.5% over the same period; largely due to improvements in efficiency and gradual decoupling of GDP from energy use. [4] Renewable energy's contribution to primary energy nearly doubled in this period, rising from 9.6% in 2010 to 18.5% in 2021. [1]
Despite these advances, the EU remains heavily reliant on imported fossil fuels, particularly natural gas and oil from non-EU countries. The 2022 energy crisis following geopolitical disruptions underscored the regions vulnerability to external supply shocks, leading to policy responses emphasizing energy independence and acceleration of renewable deployment.
Oil consumption has declined slowly over the past decade, while coal usage has dropped sharply due to carbon pricing under the EU Emissions Trading System. Conversely, renewable generation has exhibited a significant increase. This is particularly evident in solar photovoltaic capacity, which saw its electricity generation grow more than three-fold between 2010 and 2021. [1] As shown in Fig. 1, this growth in renewables has worked to offset the steep decline in coal-fired generation. [1,4]
Nuclear power, although politically divisive, continues to serve as a low-carbon baseload option, representing around 12% of total primary energy input and about 25% of electricity generation. [5] France, in particular, remains the largest nuclear producer in the EU. Droughts however pose a risk to nuclear due to lack of water for cooling. [6]
Recent policy initiatives have reinforced the European Union's structural transition toward lower energy demand and greater resilience in supply. The 2022 energy crisis, which the Council of the European Union identified as being caused by an "artificial reduction" of gas supply in the context of "Russia's war of aggression against Ukraine," prompted the adoption of legally-binding emergency measures. [6] This policy, codified in Council Regulation (EU) 2022/1854, quantifies the EU's near-term commitment to "develop the energy autonomy" of the Union. [6]
The regulation establishes two primary financial mechanisms to fund this transition. First is a mandatory cap on market revenues for inframarginal electricity producers, including renewables and nuclear, set at 180 EUR per MWh of electricity produced. [6] Second is a "mandatory temporary solidarity contribution" on the surplus profits of fossil fuel companies, set at a rate of at least 33%. [6] The proceeds from these measures are legally earmarked to, among other uses, promote "investments... into renewable energies, energy efficiency or other decarbonisation technologies". [6] This aggressive push for new renewable capacity is built upon the EU's established low-carbon foundation, where nuclear power remains a critical baseload, accounting for approximately 25% of total electricity generation. [5] Collectively, these policies quantify a dual strategy: capturing windfall profits to fund an accelerated green transition while leveraging the significant, existing nuclear fleet. [5,6]
Research efforts across Europe focus on three main areas: Decarbonization of Industrial Heat and Transport, Integration of Long-Duration Storage, and Energy Efficiency and Behavioral Shifts.
© Erin Daly. The author warrants that the work is the author's own and that Stanford University provided no input other than typesetting and referencing guidelines. The author grants permission to copy, distribute and display this work in unaltered form, with attribution to the author, for noncommercial purposes only. All other rights, including commercial rights, are reserved to the author.
[1] "BP Statistical Review of World Energy 2022," British Petroleum, June 2022.
[2] "Renewables 2022 - Global Status Report," REN21, 2022, pp. 31-45.
[3] S. Brown et al., "European Electricity Review 2024," Ember Energy, 2024. pp. 5-10.
[4] A. Widuto, EU progress Towards Sustainable Development Goal on Energy (SDG 7), European Parliamentary Research Service, July 2023.
[5] "Nuclear Power Reactors in the World," International Atomic Energy Agency IAEA-RDS-2/44, July 2024.
[6] "Council Regulation (EU) 2022/1854 of 6 October 2022 on an Emergency Intervention to Address High Energy Prices," Official Journal of the European Union, 2022 O.J. (L 261) 1, 7 Oct 22.