Europe Poised for Record Renewable Growth in 2025 — But Challenges Loom Large

RENEWABLE ENERGY

In 2025, the European Union is set to add a record 89 gigawatts (GW) of new renewable energy capacity. This would include approximately 70 GW of solar power and 19 GW of wind energy, significantly up from 65.5 GW of solar and 12.9 GW of wind installed in 2024.

✅ Why This Matters

  • This growth is seen as essential to meet the EU’s climate targets and reduce dependency on Russian gas by the 2027 phase-out deadline.
  • The boost in renewable deployment is critical to accelerating the energy transition and securing long-term energy resilience.

⚠️ Industry Concerns: Clouds on the Horizon

Despite ambitious targets, key challenges threaten the rollout:

  • Prolonged permitting delays are slowing down project approvals across several countries.
  • Cuts in incentives—such as reduced rooftop solar feed-in tariffs in France—are weakening growth projections.
  • Industry association SolarPower Europe has warned that downward revisions to the 2025 forecast may be necessary, citing the withdrawal of support in major markets like France 

Meanwhile, developers such as Orsted have raised alarms about escalating project costs and supply chain disruptions. Industry group WindEurope projects a 35% rise in wind capacity to 17.4 GW this year, but warns that resource and regulatory hurdles could slow progress .

🔍 Summary Table

Aspect

2025 Forecast/Detail

Total new renewables

89 GW

Solar

70 GW

Wind

19 GW

Key challenges

Permitting delays, subsidy cuts, rising costs

Forecast risks

Potential downward revision by industry groups