Renewable energy sources represented 24.5% of the European Union’s final energy use in 2023. The share is estimated to have increased by one percentage point since 2022, still largely driven by strong growth in renewable electricity supply. The share is also amplified by a small 2023 reduction in non-renewable energy consumption. Meeting the new minimum EU target of 42.5% for 2030 will demand doubling the rates of renewables deployment seen over the past decade and a deeper transformation of the European energy system.

Figure 1. Progress towards renewable energy source targets for EU-27

Renewable energy sources (RES) have multiple benefits for society compared with fossil fuels, such as mitigating climate change, reducing the emission of air pollutants and improving energy security. The revised Renewable Energy Directive increases the binding target from 32% to a minimum 42.5% share of renewables in EU energy consumption, with the aim of achieving 45%. Each Member State will contribute to this common target. Targets were not introduced for individual countries.

At 24.5% in 2023, the share of renewables in the EU increased by one percentage point from 2022. It represents a historical high following the adoption of important EU legal frameworks to speed up the clean energy transition. The Fit-for-55 EU policy package and the higher EU ambitions introduced by the RepowerEU plan are especially relevant in response to Russia’s invasion of Ukraine.

The 2023 renewable energy share also signals a return to higher growth rates of renewables after a dip in 2021 (figure 1). In absolute values, the gross final consumption of renewables grew by almost seven million tonnes oil equivalent (Mtoe) between 2022 and 2023, driven by a substantial increase in solar power generation (by 19.7%) and wind power (by 9.3%).

Non-renewables saw a reduction of 3%, mainly linked to lower utilisation of coal for energy supply. This increased the relative share of renewables in the EU gross final energy consumption.

The electricity system continued to lead decarbonisation efforts in 2023, with 45.3% of all EU power generated from renewable sources. It was followed by heating and cooling (26.2%) and transport (10.8%), where renewable energy from heat pumps (+13%) and renewable electricity consumption in road transport (+53%) increased notably, compared with 2022.

Solid, gaseous and liquid biomass resources together formed the largest category in 2023, totalling half of all renewable energy consumption. This may have implications for terrestrial carbon sinks, biodiversity and air pollution if the demand for biomass continues to increase. Solid biomass is most widely used in residential and district heating, electricity generation and industry. Gaseous biomass (biogas) is typically burned to produce heat and power, while liquid biomass fuels (biofuels) are mainly used directly or blended with gasoline and diesel in transport.

Wind (17%), hydro power (13%) and solar photovoltaics (9%) were the other three largest renewable energy sources, followed by heat pumps and liquid biofuels (both with an 8% share of all renewable energy use). Other renewables sources were biogases, renewable waste, geothermal and solar thermal.

Looking at the longer-term trends, the RES share more than doubled between 2005 and 2023. This was driven by dedicated policies and support schemes, as well as increased economic competitiveness of renewables. The increase represents a compound annual growth rate (CAGR) of 3.9% over the last decade (or 5.0% since 2005).

Modelling from the IEA and Ember indicate that reaching the new minimum target for 2030 of a 42.5% share of renewables might be feasible if fast and decisive action is taken to promote renewables and reduce energy consumption. The trends in the deployment of solar photovoltaics and heat pumps also provides optimism. However, reaching the target will require a challenging CAGR of 8% on the EU renewables share until 2030, which is more than double the observed rate over the past decade. Considering this, the EU is not likely to meet its target, unless it allocates more resources for a deep transformation of the energy system.

Figure 2. Share of energy from renewable sources, by country

Sweden, Finland and Denmark had the highest RES shares among Member States in 2023 due to strong hydro industries (Sweden and Finland), wind power and wide use of solid biofuels for district heating. By contrast, Luxembourg and Belgium reported the lowest deployment of renewables, of 12% and 15% in 2023.

Over time, Denmark, Sweden and Estonia have experienced the highest growth in RES shares, with more than 20 percentage points increase since 2005. Croatia, Slovenia and Romania, on the contrary, have seen an increase of less than nine percentage points between 2005 and 2023.

On a shorter timescale, 22 EU Member States saw an increase in their renewable energy shares between 2022 and 2023. Austria, Bulgaria and Finland topped the list, having increased their RES share by three percentage points or more in 2023. In contrast, the RES share of Latvia, Slovakia, Luxembourg and Poland decreased, compared to 2022.

In the European Economic Area, Norway and Iceland both have RES shares above 75%. The two countries generate most of their electricity from hydropower while, in Iceland, geothermal energy provides the majority of heating.