EU power sector emissions drop 13% in 2024 as fossil share shrinks to 28%

Annual EU power sector emissions fell by 13% in 2024 as the share of fossil fuels in the bloc's power mix shrank to a record-low 28%, sector association Eurelectric said Jan. 2.

Renewables contributed 48% to the EU generation mix, followed by nuclear at 24%, it said based on preliminary system data, with hydro and solar registering the biggest year on year gains.

Power demand grew by less than 2% and remains significantly below pre-crisis levels.

As a result, EU power sector emissions are now 59% lower compared to 1990, while 2024 registered the cleanest power generation mix ever, it said.

"Investing in higher renewable generation is the right path for a more competitive and decarbonized economy, but it must be complemented by more firm and flexible capacity to balance their variability, limit reliance on costly fossil fuels and contain price spikes," said Cillian O'Donoghue, policy director at Eurelectric.

The average EU day-ahead wholesale electricity price fell 16% to Eur82/MWh in 2024, compared with Eur97/MWh in 2023, according to Eurelectric.

Negative hourly prices occurred 1,480 times -- also a new record -- with 17% of hours negative in at least one bidding zone, it said.

"Electrification remains the low-hanging fruit to decarbonize the EU," the association said, calling on the new European Commission to boost industrial electrification.

The EC's upcoming Clean Industrial Deal would be the "ideal opportunity to provide new incentives to electrify such as creating an electrification bank, electrification accelerated areas and de-risking mechanisms for long-term power purchase agreements," it said.

EU carbon allowance prices rebounded in late 2024 from a two-year low last winter. Platts, a unit of S&P Global Commodity Insights, last assessed EUA (nearest December) at Eur72.59/mt on Dec. 31.