Europe in the Cleantech Race: From Climate Plan to Energy, Industrial and Strategic Pillar

A Europe that still relies on fossil fuels

Europe is facing the energy transition while still constrained by its heavy reliance on external energy supplies. The growth of renewable energy is taking place alongside an economy that depends on imported oil and gas. According to the research, in 2025, European imports of fossil fuels surpassed €350 billion – equivalent to €1,750 annually for each European household. Oil alone accounted for €231 billion, compared to €104 billion of natural gas and €18 billion of coal.

Recent energy crises have accelerated the search for alternatives. The disruption of Russian gas supplies following the invasion of Ukraine led to sharp increases in energy prices in 2022, while subsequent geopolitical tensions have once again put the spotlight on the vulnerability of fossil fuel energy markets.

Electricity currently represents 23 percent of the European Union’s energy consumption and “this percentage is likely to increase in the coming years as transportation, heating and industry become more electrified,” the report states. The European Commission’s projections point to a much more electrified economy in line with 2050 climate targets, with an electrification rate around 60 percent.

In 2025, electricity generated in the European Union was distributed as follows:

• Wind: 17%
• Solar: 12%
• Nuclear: 23%
• Hydropower: 12%
• Bioenergy: 6%
• Fossil fuels: 29%

Electrification as the backbone of change

The Atlas identifies electrification as an essential element in the European energy transition. While in China the percentage of energy consumed as electricity increased from 19 percent in 2011 to 29 percent in 2023, while in the European Union, where the average has remained stagnant for the past decade, the pace by country is uneven. For example, Norway leads in electrification thanks to the high penetration of electric vehicles, heat pumps and electric industrial solutions. Sweden and Finland follow similar patterns. Bulgaria stands out due to a relatively limited domestic gas network, which has led to greater use of electricity in residential heating.

In addition to electricity demand, supply is also significant, supported by the availability of renewable resources and policies to promote their development.

Researchers from the Bruegel think tank argue that the entire energy system must be transformed so that electricity can directly replace fossil fuels in heating buildings, moving vehicles, lighting, and producing goods. Some of the measures include:

• Producing low-emission electricity
• Creating infrastructure capable of transporting it to consumers and using it to provide ‘useful energy services’ (transportation, heating).

Cleantech growth is closely linked to rising electricity consumption and to the increasingly important role of electricity in the economy, as the authors of the report acknowledge.