EU Sees Record Solar Output and EV Sales in 2025 Despite Higher Power Prices

The European Union recorded a year of strong renewable energy growth in 2025, with solar power generation reaching a record level and renewable capacity additions remaining close to historic highs, according to the latest quarterly electricity and gas market reports released by the European Commission. The reports, covering the third and fourth quarters of 2025, show that the EU continued to expand its clean energy portfolio while electric vehicle ( EV ) adoption accelerated significantly across the region. At the same time, electricity and gas consumption rose modestly as energy demand gradually recovered following the 2022 energy crisis. Solar Leads Renewable Power Expansion Solar energy emerged as the fastest-growing source of electricity generation in the EU during 2025. Total solar generation climbed 18% year-on-year to a record 275 TWh, while offshore wind generation increased by 4%, adding 3 TWh compared with 2024. Renewable energy deployment also remained robust throughout the year. The EU installed nearly 70 GW of new renewable energy capacity in 2025, with solar accounting for 56 GW of new installations. Wind energy contributed a further 13 GW through a combination of onshore and offshore projects, reinforcing the bloc's continued investment in clean electricity infrastructure. Record EV Sales Strengthen Electrification Electric vehicle adoption reached a new milestone across the European Union during 2025, with 2.89 million new EVs sold over the year. Sales increased by 31% compared with 2024 and have nearly tripled since 2019, representing overall growth of 177%. During the fourth quarter of 2025, EVs accounted for 22% of all new vehicle sales in the EU, more than three times the market share recorded in the United States, where EVs represented 7% of sales. Electricity Prices Rise Wholesale electricity prices increased moderately during 2025, with the European Power Benchmark averaging €85/MWh. This represented a 9% increase from 2024 but remained 14% below the average recorded in 2023. Price differences across Member States remained substantial. Finland registered the lowest annual average wholesale electricity price at €41/MWh, while Italy recorded the highest average at €116/MWh. Electricity demand also edged higher during the year, increasing by 1% compared with 2024. The rise was primarily attributed to colder winter temperatures. However, overall electricity consumption remained around 2% below the average recorded between 2019 and 2022, indicating that demand recovery following the energy crisis remains gradual. Gas Market Shows Signs of Stabilisation The EU gas market experienced modest price increases during 2025. Average wholesale gas prices reached €36/MWh, up 5% from €34/MWh in 2024, partly reflecting price pressures following the suspension of Russian pipeline gas transit through Ukraine early in the year. Despite the increase, wholesale gas prices remained 22% lower than the 2021 average of €47/MWh. Retail gas prices also appeared to stabilise, averaging €109/MWh during 2025. Natural gas consumption across the EU totalled 339 billion cubic metres (bcm), a 2% increase from 332 bcm in 2024. The modest rebound follows the sharp decline in gas demand during the 2022–2023 energy crisis, although overall consumption remained below 2022 levels. The latest electricity and gas market reports complete the European Commission's assessment of energy market developments throughout 2025. Published by the Commission's Directorate-General for Energy (DG Energy), the quarterly reports analyse electricity and gas market trends, pricing dynamics, consumption patterns and the evolving role of renewable energy across the European Union.