The EU's electricity production took a historic step in 2025. For the first time, wind and solar provided more power than fossil fuels combined. It is a clear turning point in the green transition, but it does not in itself provide cheaper electricity for businesses.
According to the new European Electricity Review from the analysis organisation Ember, wind and solar accounted for 30.1% of the EU's total electricity production in 2025, while fossil sources fell to 29.0%.
At the same time, renewable energy overall provided nearly half of the electricity in the EU. The development is particularly driven by solar energy. Electricity production from solar increased by 20.1% in one year and reached a new record level of 369 TWh. The growth is linked to both large solar parks and many new rooftop installations, and in 2025 solar production grew in all EU countries. In several countries, solar now covers over a fifth of electricity consumption. This applies to the Netherlands, Spain, and Greece, among others, and further north, solar also received a boost in 2025 because the year was unusually bright.
Gas production rises
Despite the breakthrough in green production, electricity prices have not followed suit. On the contrary, average wholesale prices rose in 21 EU countries in 2025. Ember explains the development by stating that prices are particularly driven up during the hours when solar and wind do not deliver enough, and where gas plants therefore play a larger role in the market.
Gas production increased in 2025, partly because hydropower decreased, which drove up the EU's gas bill for electricity production. The report indicates that the EU's import expenditure on gas for electricity production reached 32 billion euros in 2025, 16% higher than the previous year. When gas plays a larger role during the most expensive hours of the day, fluctuations in electricity prices continue to affect many businesses, especially in the morning and evening when demand is often highest.
Batteries are the solution
Therefore, the report points to batteries as one of the key solutions for more stable and lower electricity prices. When electricity from solar and wind can be stored and used during peak periods, the need for expensive gas can be reduced precisely where it often sets the price today. Already in 2025, according to Ember, there are signs that batteries are starting to make a difference, but the potential is far from being fully utilised. The EU's large batteries surpassed 10 GW in 2025, and there is a growing pipeline of projects that can significantly increase capacity in the coming years.
For businesses, this development means that the electricity market is moving in a greener direction, while the demands for flexibility and adaptation in consumption are growing. Investments in flexible electricity consumption, storage, and energy efficiency are becoming more central because the price increasingly depends on when electricity is used, not just how much is used. Ember points out that a smarter electricity system with batteries and a stronger grid can both dampen price fluctuations and reduce dependence on imported gas, which in the long term can provide more stable and predictable conditions for businesses, even in energy-intensive sectors.
The report also shows that Denmark produces 71 percent of its electricity from wind and solar, which is the highest in Europe. And that Germany now produces more electricity from solar energy than from gas.
Read the full report here
