Standfirst: Solar power is helping Europe reduce its exposure to expensive fossil-fuel imports, with new analysis estimating billions of euros in savings. Spain’s rapid expansion of wind and solar capacity shows how renewable generation can reduce the role of gas in electricity pricing, although the EU still faces challenges from rising demand and uneven output.
Europe’s growing solar fleet is providing more than clean electricity: it is also reducing the amount of gas the region needs to import. Analysis from SolarPower Europe estimates that solar generation has saved Europe €37.4 billion by lowering demand for imported gas during a period of severe energy-market volatility.
The finding underlines the importance of the EU’s energy transition as households, companies and governments remain exposed to wholesale gas prices and international supply disruptions. Solar power cannot eliminate that exposure on its own, but it can reduce the number of hours in which gas-fired plants set electricity prices.
Solar power reduces Europe’s fossil-fuel import bill
Solar generation has expanded rapidly across Europe as countries seek to cut emissions, improve energy security and reduce dependence on imported fuels. Every unit of electricity produced by solar can displace generation from gas or coal, depending on market conditions and available capacity.
SolarPower Europe argues that the benefits extend beyond climate policy. Greater domestic renewable generation can also limit the effect of sudden increases in international gas prices, particularly when supply routes or geopolitical conditions disrupt energy markets.
The organisation describes electrification, additional renewable capacity and technologies such as battery storage as important elements of a longer-term energy-security strategy. Storage and other flexibility measures can help manage the fact that solar generation varies according to daylight and weather conditions.
- Solar reduces demand for imported fossil fuels during periods of strong generation.
- Renewable electricity can displace higher-cost gas generation in wholesale markets.
- Battery storage and flexible demand can help shift clean electricity to periods of higher demand.
- A broader mix of solar, wind, hydro and other low-carbon technologies can reduce reliance on any single source.
Spain is leading Europe’s renewable expansion
Spain has emerged as one of the strongest examples of how rapid renewable deployment can change an electricity system. Since 2019, the country has doubled its wind and solar capacity, adding more than 40 gigawatts to its energy mix.
Analysis from energy think tank Ember found that Spain’s growth in wind and solar reduced the influence of expensive fossil-fuel generators on electricity prices by 75% since 2019. The reduction was faster than in other gas-reliant countries, including Italy and Germany.
This matters because European power markets generally use a marginal-pricing system. The most expensive generator needed to meet demand often determines the wholesale price for all electricity sold during a given period. When wind and solar displace gas-fired generation, gas sets the market price less frequently.
The result does not mean renewable power automatically lowers every household’s bill. Retail prices also reflect network charges, taxes, supplier costs and long-term contracts. However, a larger supply of low-cost renewable electricity can reduce pressure in wholesale markets, particularly when gas prices are high.
Renewables are growing, but progress is uneven
Eurostat data cited in the analysis show that renewable sources produced 54.1% of EU electricity in the second quarter of 2026. That was slightly below the 54.3% recorded in the same period a year earlier.
EU electricity generation increased by 3.2% year on year in the quarter. Gas-fired generation grew by 3.9%, while renewable generation increased by 2.8%. The figures show why the expansion of solar capacity does not necessarily produce a straight-line decline in fossil-fuel use.
Solar nonetheless accounted for 41.6% of renewable electricity generation in the quarter, up from 37% a year earlier. Stronger solar output helped offset weaker performance from some other renewable sources, but the wider system still required gas when demand rose or wind and hydropower production fell.
Why a diversified energy mix matters
Power-sector analysts say the figures strengthen the case for combining different renewable technologies with storage and demand flexibility. Solar output is concentrated during daylight hours, while wind and hydropower depend on weather and water conditions.
A balanced system can therefore reduce the need to restart gas generation when one renewable source underperforms. Interconnectors, batteries, pumped storage and smarter electricity use can also help match generation with demand across national borders.
Wind power adds to the pressure on gas
The United Kingdom has also recorded strong renewable output. On 26 March, British wind generation reached 23,880 megawatts, enough to supply around 23 million homes based on the estimate cited in the analysis.
During the record period, wind supplied more than half of Britain’s electricity. Gas generation fell to 2.3% of electricity output, its lowest level for almost two years, while wind and solar displaced some more expensive fossil-fuel generation.
The UK is not part of the EU, so its electricity system is governed by a separate national and regulatory framework. Its experience is nevertheless relevant to wider European energy policy because electricity markets across the region face similar questions about renewable investment, grid capacity, storage and gas dependence.
What the figures mean for Ireland
Ireland is not directly covered by the EU-wide savings estimate as a separate national figure in the analysis, but the wider trend is relevant to Irish energy policy. Ireland’s electricity system is connected to European markets and is also working to expand renewable generation while managing periods when wind output is low.
For Irish consumers and businesses, the key lesson is that renewable capacity alone is not enough. Grid investment, storage, interconnection and flexible demand are needed if clean electricity is to reduce exposure to gas prices consistently.
EU energy policy will continue to focus on reducing fossil-fuel dependence, strengthening electricity networks and accelerating the deployment of clean technologies. The pace of progress will vary between member states, depending on planning systems, grid capacity, investment and the availability of suitable sites.
What happens next?
The analysis points to a continuing need for investment rather than a completed transition. EU countries will need to expand solar and wind capacity while improving the infrastructure that allows electricity to move across borders and be stored when production exceeds demand.
The main priorities include:
- Building more renewable generation and upgrading electricity grids.
- Expanding battery storage and other flexibility solutions.
- Improving cross-border interconnection between national power markets.
- Reducing permitting delays for clean-energy projects.
- Maintaining backup capacity while the electricity system becomes less dependent on gas.
Solar power is already reducing Europe’s fossil-fuel import needs and limiting the influence of gas in some electricity markets. Spain’s experience shows the potential of sustained renewable investment, but the EU-wide figures also demonstrate that the transition remains uneven. The clearest takeaway is that solar must be developed alongside storage, grid upgrades and a broader renewable mix if Europe is to achieve lasting energy security.
