Europe Energy Transition: Sectors and Companies Driving Development, 2025

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Europe’s energy transition is accelerating, with strong policy support driving record renewable growth, EV adoption, and emerging low-carbon hydrogen and CCUS activity. Despite momentum, the EU remains off track for 2030 climate goals due to slow progress in fossil phaseout, permitting delays, and investment barriers. This report delivers a clear overview of key technologies, policies, and market leaders shaping the region’s clean energy landscape.

Europe’s energy transition is advancing at pace, driven by ambitious policy targets, record renewable additions, and a strong investment pipeline. Yet, despite this momentum, the EU remains off track to meet its 2030 climate goals. By 2025, renewables will account for 58% of Europe’s power mix, with wind and solar leading growth. However, Europe as a whole is expected to exceed 50% renewable generation only by 2030. Energy storage is scaling fast, with capacity set to reach 85GW by 2030, while EV adoption continues to surge, backed by EU-wide targets for 100% zero-emission car sales by 2035. In transport, the EU’s SAF mandates are kicking in, requiring 2% blending by 2025 and scaling up through 2050, helping decarbonize the aviation industry. Europe remains a global leader in CCUS and low-carbon hydrogen project announcements. However, high costs, slow permitting, and ongoing policy uncertainty, especially around long-term price signals, pose barriers to final investment decisions. This report provides a comprehensive view of Europe’s transition technologies, policies, and project pipelines, offering critical insights for stakeholders navigating one of the world’s most active clean energy regions.

Scope

European climate targets, CO2 emissions, renewable energy potential, leaders in renewable energy, renewable energy policies, power consumption and demand, renewable power capacity and generation, decommissioning of thermal power, energy storage capacity, electric vehicle and hybrid vehicle sales, upcoming renewable refineries, biodiesel, ethanol, RD, SAFs, CCUS outlook, upcoming CCS projects, hydrogen policies, upcoming hydrogen capacity by stage, type and end use.

Key Highlights

In 2025, renewable technologies accounted for 58% of Europe’s total power capacity, with the share of renewable power generation projected to rise from 43% to 58% between 2025 and 2035. Nearly 100GW of thermal capacity is expected to be retired by 2035, but gas remains in the mix, with ~60GW of additions expected over the same period.

While several countries are making strong progress, Europe as a whole is not expected to surpass 50% renewable generation until 2030.

Europe’s energy storage capacity is expected to grow significantly, reaching almost 85GW by 2030, up from 25GW in 2025.

Battery electric vehicles (BEVs) are projected to make up 82% of EU light vehicle sales by 2035.

SAFs are gaining traction, supported by mandates under the ReFuelEU Aviation, which requires SAFs to make up 70% of aviation fuel by 2050.

Europe is emerging as one of the most active regions globally for CCUS, expected to reach a maximum capture capacity of 311mpta by 2030.

Considering projects with start years up to 2030, Europe has the largest low-carbon hydrogen project pipeline globally, with 22mtpa of expected capacity by 2030, of which 37% is already in post-feasibility.

Reasons to Buy

Assess the current regional emissions, thermal and renewable capacity, and generation share, and identify which countries are driving the energy transition in Europe.

Identify market trends within the industry, including expected 2030 capacities for a range of technologies.

Identify who the leading countries and regional players are in renewable energy capacity and energy transition technologies such as hydrogen and CCUS.

Understand the legislative framework laid out by the region’s governments and the European Commission aimed at accelerating the region's race to net-zero by 2050.

Iberdrola SA
BP Plc
Innargi Energy ApS
Mainstream Renewable Power
TotalEnergies SE
Lightsource BP
Enel SpA
Saudi Electricity Co
Statkraft AS
Rubis Power
Orsted AS
RWE AG
SSE Plc
Vattenfall AB
International Energy BV
Akuo Energy
EDF SA
Copenhagen Infrastructure Partners
Prodiel Proyectos de Instalaciones Electricas SA
Vinci SA
Belectric GmbH
Eiffage SA
China Energy Engineering Group Co Ltd
CEZ AS
Voltalia SA
Goldbeck GmbH
Trina Solar Co Ltd
JinKoSolar Holding Co Ltd
Canadian Solar Inc
LONGi Green Energy Technology Co Ltd
First Solar Inc
Risen Energy Co Ltd
Gint Group Co Ltd
Hanwha Solutions Corp
Vestas Wind Systems AS
Siemens Energy AG
Nordex SE
Jan De Nul Group
DEME Group NV
OKZ AB
General Electric Co
Senvion SA
Ming Yang Smart Energy Group Ltd
Goldwind Science & Technology Co Ltd
Xlinks
Statera
Volkswagen (VW)
Tesla
BMW
Neste
Eni
Moeve
Bioeléctrica de Garray
Equinor ASA
Air Products
Air Liquide
Yara International

Table of Contents

Executive Summary

Sector grid and European leaders

Power Outlook & Generation

Global vs European CO2 emissions

EU climate targets and policies

Power capacity share outlook

Power generation share outlook

European countries’ renewable generation share

Thermal power: decommissioning and emissions

Major players in renewable power

Energy Storage

European energy storage and transmission systems outlook

Europe’s largest upcoming energy storage projects and key policies

Electric Vehicles

European countries’ EV targets

Growth in BEV sales

Growth in charging infrastructure

Renewable Fuels

Renewable refineries

Renewable fuels outlook: RD

Renewable fuels outlook: SAFs

Renewable fuels outlook: Ethanol and FAME Biodiesel

Europe’s largest active and upcoming renewable refineries

CCUS

CCUS policies and funding

European CCUS outlook

European CCUS key facility industries

Europe’s largest active and upcoming carbon capture and storage projects

Hydrogen

Key hydrogen policies

European hydrogen capacity by development stage

European hydrogen capacity by type

Intended use sectors for low-carbon hydrogen

Europe’s largest active and upcoming hydrogen projects by 2030

Table

Sector grid and leaders

Solar PV EPC providers and equipment manufacturers

Wind power EPC providers and equipment manufacturers

Europe’s largest upcoming energy storage projects

European countries’ zero-emission vehicle sales targets and policy updates

Europe’s largest active and upcoming renewable refineries

Europe’s largest active and upcoming carbon capture projects

Europe’s largest active and upcoming carbon storage projects

Europe’s largest active and upcoming hydrogen projects by 2030

Figures

Annual CO2 emissions by world region, 1990-2023

Europe power capacity share, 2015-2035

Europe total power capacity share by technology type, 2025

Europe total power capacity share by technology type, 2035

Europe power generation share, 2015-2035

Renewable power generation, 2015-2035

Key Europen countries' renewable power generation share, 2025-2035

Upcoming and decommissioning thermal capacity, 2025-2035

European CO2 emissions by thermal power, 1990-2023

Leading European players in solar PV capacity

Leading European players in wind power capacity

European energy storage capacity by technology, 2020-3030

Europe transmission investment, 2022-2027

European BEV sales forecast, 2020-2035

European BEV % of LV sales, 2020-3035

European sites with EV charging facilities in 2025

Active and upcoming renewable refineries by country

European renewable fuel expected 2030 capacity by refinery type

European active and upcoming RD capacity, 2020-2030

Top 10 European countries in RD production by expected 2030 capacity

European active and upcoming SAF capacity, 2020-2030

Top 10 European countries in SAF production by expected 2030 capacity

European Ethanol production capacity, 2020-2030

European FAME biodiesel production capacity, 2020-2030

Max expected 2030 capture capacity by region

Leading European countries by CCS capacity, 2020-2030

European share of top 10 CCUS facility industries by 2030

European top 10 facility industries by 2030 capacity

Leading regions for active and upcoming low-carbon hydrogen capacity up to 2030

European low-carbon hydrogen capacity by development stage, 2025-2030

Leading European countries for blue and green hydrogen expected 2030 capacity

Leading European countries for max blue and green hydrogen capacity by development stage

Electrolysis capacity targets in Northwest Europe by 2030

European target end-use sectors for low-carbon hydrogen

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