Utilities across the European Union cranked output from natural gas and coal-fired power plants during the opening half of 2025, boosting power sector emissions and reversing recent energy transition momentum.
The upswing in fossil production follows two years of steep declines in fossil use within the EU, which established Europe as a global leader in efforts to curb reliance on polluting fuels in power production.
However, year-on-year drops in output from wind farms and hydro dams deprived EU utilities of key sources of clean power during January to June, and forced them to compensate with sharply higher generation from fossil fuel plants.
This abrupt reversal in EU fossil fuel use highlights the challenge facing even modern energy systems when weather patterns impede clean power supplies, and suggests that fossil fuels may stay rooted in global power systems for years more.
CLIMATE CHANGED
EU utilities generated 13% more electricity from fossil fuels during January to June compared to the same period in 2024, which was the largest annual increase in fossil output for that period since 2017, data from think tank Ember showed.
Gas-fired generation climbed by 19% to the highest in three years, while coal-fired output rose by 2% to two-year highs.
The higher gas and coal combustion resulted in power emissions rising by 9% from the year before to 297 million metric tons of carbon dioxide, and means that the EU could discharge nearly 600 million tons of CO2 this year if the current burn pace is sustained.
The main triggers of the higher fossil fuel use were steep declines in clean power supplies tied to weather conditions across Europe since late 2024.
Output from wind farms, which accounted for close to 20% of EU electricity supplies during the first half of 2024, registered the largest year-over-year fall on record during January to June, dropping by 9% to 225 terawatt hours (TWh).
Sustained low wind speeds at turbine level – especially in Germany which is home to over 30% of EU wind farm capacity – were the main drag on wind power production.
At the same time, below-expected snow and rainfall over the winter in Europe resulted in a 15% year-on-year drop in electricity output from hydro dams, which accounted for around 15% of EU electricity supplies last year.
The roughly 164 TWh of hydro electricity output during January to June was 28 TWh less than during the same months in 2024, and was the lowest in two years for that period.
SOLAR SHINES – BUT NOT ENOUGH
A 21% or 32 TWh increase in EU solar power electricity supplies helped provide some cushioning for utilities against the drops in wind and hydro generation.
The 179 TWh of electricity output from EU solar farms during the first half of 2025 was a record, and marked the first time that the EU’s solar farms produced more electricity than the region’s hydro dams during the January to June window.
And steady increases in installed solar capacity look set to lift solar-powered electricity supplies to new heights over the coming months, ensuring that clean energy advocates in the EU will have something to celebrate.
However, the deep and enduring drops to wind and hydro output are also a major cause for concern, especially as climate trends indicate that further deviations in weather patterns from previous averages can be expected.
Steadily rising average temperatures are resulting in steadily declining snow coverage at low altitudes across Europe, and are pinching regional hydro dam output – despite hydro dam capacity in the EU hitting a record last year.
And while climate change is triggering more intense storms in many areas, it is also causing more frequent wind droughts as the temperature differential between the Earth’s poles and tropical areas narrows.
This phenomenon – known as Global Stilling – is a major worry for energy planners who have been banking on large scale wind farms playing a dependable role in clean electricity generation over the coming decades.
If wind speeds regularly slow to a crawl for months on end, and hydro networks continue to get only meagre snow and rainfall during the winters, EU energy suppliers will struggle to keep up with demand – even if solar output keeps climbing.
That in turn means that regardless of long-term ambitions to wean power systems off fossil fuels, natural gas and coal will likely remain integral tools for EU utilities for the foreseeable future.
The opinions expressed here are those of the author, a columnist for Reuters.
Enjoying this column? Check out Reuters Open Interest (ROI), your essential new source for global financial commentary. ROI delivers thought-provoking, data-driven analysis of everything from swap rates to soybeans. Markets are moving faster than ever. ROI can help you keep up. Follow ROI on LinkedIn and X.
Source: Reuters