Europe and Ireland are at the forefront of the renewable energy transition, but the journey is as challenging as it is exciting. Here are some of the key trends shaping the landscape in 2025:
Record Growth in Renewable Capacity
The EU is on track to install a record 89GW of new renewable energy capacity this year—including 70GW of solar and 19GW of wind. This rapid expansion is vital for meeting climate targets and reducing reliance on imported gas, especially as Europe aims to phase out Russian gas by 2027 [7]
Grid Infrastructure: The Next Big Challenge
Despite the impressive growth, Europe’s electricity grid is struggling to keep pace. Outdated infrastructure and planning bottlenecks have left 1,700GW of renewable projects stuck in connection queues, far exceeding what’s needed for 2030 targets. Grid constraints led to billions in wasted clean electricity in 2024 alone, underscoring the urgent need for modernized, resilient grids [3]
Ireland’s Ambitious Solar Expansion
Ireland is making significant strides, with solar energy output projected to reach 104.16 million kWh by 2025. The government’s goal is for 80% of electricity to come from renewables by 2030, supported by investments in grid upgrades and incentives for solar adoption at both utility and community levels [2]
Focus on Energy Storage and Flexibility
As variable renewables like wind and solar dominate, energy storage is becoming essential for grid stability. Europe’s battery fleet is growing, but price volatility and supply-demand mismatches remain challenges. Hybrid systems and co-located storage are emerging trends to watch [5]
Policy & Investment Momentum
Ireland’s Budget 2025 allocates €750 million to grid infrastructure and increases funding for solar PV schemes. There’s also a VAT reduction on heat pumps and expanded energy efficiency grants—steps that will help households and communities transition to cleaner energy [2] Across Europe, policymakers are mobilizing over €100bn to boost clean manufacturing and accelerate decarbonization [7]
Innovation in Biomethane & Green Hydrogen
Biomethane production is surging, and new policies are supporting its integration into the gas network. Ireland and other European countries are also exploring green hydrogen and offshore wind as part of their long-term strategies [4]
We are the first generation to feel the effect of climate change and the last generation who can do something about it.
Takeaway
The renewable energy revolution in Europe and Ireland is gathering pace, driven by ambitious targets, supportive policies, and technological innovation. However, modernizing grid infrastructure and scaling energy storage are critical to unlocking the full potential of renewables and ensuring a resilient, affordable, and sustainable energy future.
References
- SEAI. (2024, December 5). Energy in Ireland 2024 report. Sustainable Energy Authority of Ireland. https://www.seai.ie/sites/default/files/publications/energy-in-ireland-2024.pdf1
- Eurostat. (2025). Shedding light on energy in Europe – 2025 edition. European Commission. https://ec.europa.eu/eurostat/web/interactive-publications/energy-20252
- Climate Change Advisory Council. (2025, April 29). PRESS RELEASE: Annual Review 2025 – Electricity. https://www.climatecouncil.ie/news/press-release-annual-review-2025—electricity.html3
- Irish Solar Energy Association. (2025, April 9). Ireland’s Renewable Energy Landscape. https://www.irishsolarenergy.org/post/ireland-s-renewable-energy-landscape4
- Reuters. (2025, April 10). EU expects to add record renewable capacity in 2025, industry sees headwinds. https://www.reuters.com/sustainability/boards-policy-regulation/eu-expects-add-record-renewable-capacity-2025-industry-sees-headwinds-2025-04-10/5
- GridBeyond. (2025, May 2). Renewable energy is not being rolled out fast enough – Climate Change Advisory Council Ireland. https://gridbeyond.com/renewable-energy-is-not-being-rolled-out-fast-enough-climate-change-advisory-council-ireland/6
- LinkedIn. (2025, February 14). Preliminary data from the Sustainable Energy Authority of Ireland… https://www.linkedin.com/posts/thinkingenergy_ireland-preliminary-data-from-the-sustainable-activity-7296096818885513216-U-4T