The Europe renewable energy market reached 2641.58 Gigawatt in 2025. The market is expected to grow at a CAGR of 7.60% during the forecast period of 2026-2035 to reach 5495.24 Gigawatt by 2035. Expansion of flexible grid interconnections across Europe is boosting renewable integration, allowing cross-border energy flows and improving system resilience while simultaneously lowering volatility in wholesale electricity markets.
Europe stands at the front line of the global shift toward renewable power, largely powered by its aggressive climate policies and remarkable auction-driven project pipeline. A key driving factor shaping the market’s growth is the EU’s 2030 framework, which requires member states to reach at least 42.5% renewable share in final energy use. According to the Europe renewable energy market analysis, in 2024 alone, renewables accounted for 47% of electricity generation, with Denmark reporting 88.4% from renewables. These milestones showcase how ambitious policies and government-backed targets shape confidence while also driving large-scale private investment.
Moreover, the ability to turn regulatory frameworks into concrete capacity growth makes the region unique. For example, in April 2025, the EU allocated EUR 52 million in 2024 for cross-border renewable projects in Finland and Estonia, expected to add 445 MW by 2028. Similarly, corporate PPAs surged, with businesses contracting 19 GW of renewable power in 2024, proving that private players are equally serious about decarbonization, reshaping the Europe renewable energy market dynamics. These developments highlight a balanced system where both policy-makers and industries are pushing for cleaner grids.
Base Year
Historical Period
Forecast Period
Compound Annual Growth Rate
7.6%
Value in Gigawatt
2026-2035
*this image is indicative*
The United Kingdom’s 2024 renewables auction underscored Europe’s procurement strength, securing 131 projects with the capacity to power 11 million homes. Projects like Hornsea 3 and 4 marked Europe’s largest offshore wind developments, with costs striking well below expected caps. The scale of this achievement demonstrates how government-backed competitive auctions are crucial for cost efficiency while delivering energy security. Apart from energy generation, auctions are also supporting employment, with green jobs multiplying across coastal regions benefiting from offshore projects, boosting the Europe renewable energy market growth.
Solar and wind contributed over 70% of the Europe renewable energy increase, driven by favorable policy support and weather conditions. Denmark demonstrated how national leadership impacts continental averages. Corporate power purchase agreements have also increased in numbers, proving that long-term deals are now a mainstream financing tool. These Europe renewable energy market developments highlight that integration is not just about building new plants but aligning generation with demand through innovative financing. These strengthen grid resilience, reduce fossil dependence, and push the EU toward its Green Deal targets.
Europe’s offshore wind leadership is illustrated by Sweden’s Galatea Galene project, approved for 1.7 GW and expected to generate 6–7 TWh yearly by 2030. Floating wind platforms, advanced turbine design, and enhanced grid integration are allowing offshore sites to scale. This innovation-driven expansion ensures the offshore wind category as a future industrial pillar for manufacturing hubs across Europe. Large-scale offshore farms now directly support regional economies, securing supply chains and opening export potential in engineering expertise, propelling the Europe renewable energy market expansion.
The European Commission estimates that over EUR 584 billion must be invested in electricity grids by 2030 to enable the 42.5% renewable energy target. Modernized grids are essential for stabilizing supply as variable solar and wind rise in share. Investments are targeting cross-border interconnections, digitalized transmission, and smarter distribution networks capable of supporting electrification of transport and industry. Spain’s pumped storage plans and Romania-Bulgaria’s Danube River hydropower project show how infrastructure is being built while balancing renewable variability and securing industrial growth, accelerating the Europe renewable energy market opportunities. Improved flexibility ensures energy security and positions Europe to integrate renewables at unprecedented scales efficiently.
Corporate power purchase agreements are redefining renewable investment flows in Europe. Major players in technology, retail, and manufacturing are now using PPAs as a hedge against volatile fossil fuel markets. These deals also align with ESG commitments, adding credibility for global stakeholders. By channeling private capital directly into project pipelines, PPAs reduce pressure on public funds while still accelerating renewable deployment.
The EMR’s report titled “Europe Renewable Energy Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:
Market Breakup by Type
Key Insight: The continuous growth of the Europe renewable energy industry is powered by hydropower’s reliability, wind’s scalability, solar energy’s dynamism, bioenergy’s contribution to decarbonizing heating and transport. Hydropower anchors grid stability, while onshore and offshore wind harness strong natural corridors to expand generation. Solar continues to break records in deployment, reflecting falling costs and EU-backed incentives. Bioenergy also plays a crucial role in decarbonizing industries that cannot rely on electrification alone.
Market Breakup by Region
Key Insight: The scope for the Europe renewable energy market expansion is being shaped by diverse national approaches. Germany stands as the policy-driven leading country, Spain experiences fast-paced scalability while France pushes hybrid nuclear-renewable solutions. Italy relies heavily on rooftop solar initiatives, ensuring widespread adoption in urban areas. The United Kingdom emphasizes offshore wind, hosting some of the world’s largest projects, while the Nordics continue capitalizing on hydropower.
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By type, hydropower dominates the market due to strong infrastructure and reliability
Hydropower, supported by decades of established infrastructure and favorable geographies across the Alps, Scandinavia, and Iberian Peninsula, dominates the European market. Projects like the Danube River joint hydropower venture add further momentum. Mature technology and predictable output keep hydropower as the region’s most stable renewable source, vital for balancing intermittent solar and wind.
Solar is rapidly expanding its share in the Europe renewable energy market revenue. In 2024, the EU installed a record 65.5 GW of solar, bringing the total capacity to 338 GW. Falling module costs, easier permitting, and rooftop adoption make solar highly adaptable from households to utility-scale farms. Southern economies like Spain and Italy are witnessing large solar expansions, while northern nations are leveraging rooftop projects to maximize urban space.
Germany dominates the market supported by aggressive policy and scalability
Germany leads Europe’s renewable sector, driven by the Renewable Energy Sources Act (EEG) and its coal phase-out plan by 2038. Wind and solar receive significant state support, positioning Germany as the continent’s renewable energy capacity leader. Its grid modernization programs and national target of 100% renewable electricity by 2030 underline its ambition. With the largest installed renewable base, Germany has also become a proving ground for smart grid integration and flexible pricing models.
Spain is emerging as the fastest-growing regional renewable energy market in Europe. In April 2025, it became the first major EU country to power its entire grid with renewables for a short duration. Spain’s supportive auctions, declining costs, and ambitious climate targets are supporting its role as Europe’s most dynamic growth hub. Backed by strong political will and favorable geography, Spain is quickly building the foundation to become a long-term renewable energy powerhouse within the EU framework.
The industry is becoming intensely competitive, shaped by utilities, multinational oil and gas major companies shifting towards clean power, and specialized technology firms. Europe renewable energy market players are actively scaling offshore wind, large-scale solar, and energy storage while pursuing mergers and partnerships to consolidate positions. Focus areas include digital solutions for grid integration, AI-driven forecasting to balance renewable intermittency, and flexible trading platforms that improve cross-border flows.
Europe renewable energy companies are also targeting export opportunities. The rise of corporate PPAs opens new B2B revenue streams, while hydropower and grid upgrades remain capital-intensive but lucrative bets. Firms are also aligning innovation with EU climate targets, ensuring that competition not only drives growth but also transforms Europe into a model for sustainable power markets globally.
The Juwi Holding AG, founded in the year 1996 and based in Germany. JUWI is delivering turnkey renewable projects from planning through operation, focusing on large-scale solar and onshore wind across Europe. Juwi is advancing modular offshore foundations and AI-driven operations and maintenance portals that reduce downtime and lifecycle costs, while working with utilities on grid integration pilots.
Founded in 1990 and headquartered in Germany, WKN is a seasoned wind developer active in onshore and offshore projects across Europe, offering end-to-end services from site acquisition to technical operation. Unique for its community-centric project model, WKN pilots co-investment with local municipalities and tests rotor-sparing technologies that lower environmental impact.
ABO Wind, established in 1996 and located in Germany. ABO Wind develops wind, solar and battery projects and is pivoting into green hydrogen pilots at industrial sites. Its innovation focus includes integrated repowering frameworks and second-life battery programs that extend asset economics while delivering grid services.
Based in Paris, France and founded in 2008, Neoen is a major independent renewable producer operating utility-scale solar, wind and battery storage across Europe. Known for battery projects and merchant power strategies, Neoen is pioneering four-hour storage pairings with large PV parks and offering dispatchable clean energy products to corporate buyers.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other key players in the market are JinkoSolar Holding Co., Ltd., among others.
Explore the latest trends shaping the Europe renewable energy market 2026-2035 with our in-depth report. Gain strategic insights, future forecasts, and key market developments that can help you stay competitive. Download a free sample report or contact our team for customized consultation on Europe renewable energy market trends 2026.
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In 2025, the Europe renewable energy market reached 2641.58 Gigawatt.
Forming cross-border consortiums, deploying grid-scale storage, standardizing permitting templates, piloting blockchain PPAs, and investing in digital twins are enabling faster project delivery while diversifying revenue streams. and mobilizing local capital.
The key trends guiding the market include the significant demand for hydropower and onshore wind energy, technological advancements and innovations, and increasing awareness regarding environmental pollution and climate change in the region.
The major countries in the Europe market include the United Kingdom, France, Germany, and Italy, among others.
The significant renewable energy types considered in the market report are hydropower, onshore wind, solar, and bioenergy, among others.
The key players in the market include The Juwi Holding AG, WKN GmbH, ABO Wind, Neoen, and JinkoSolar Holding Co., Ltd., among others.
The market is projected to grow at a CAGR of 7.60% between 2026 and 2035.
Intermittent resource variability, financing gaps for transmission upgrades, permitting delays, volatile commodity prices, and grid integration complexity are challenging project bankability and slowing rollout across diverse European markets.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup by Type |
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| Breakup by Region |
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| Market Dynamics |
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| Competitive Landscape |
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| Companies Covered |
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| Report Price and Purchase Option | Explore our purchase options that are best suited to your resources and industry needs. |
| Delivery Format | Delivered as an attached PDF and Excel through email, with an option of receiving an editable PPT, according to the purchase option. |
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