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How solar power saved the EU €37.4 billion amid fossil fuel price volatility
Overview
A new report by Solar Power Europe shows that a surge in solar power has saved the EU €37.4 billion following rising gas prices caused by the war on Iran. Solar became the EU's largest single source of electricity in June, supplying 25% of the bloc's power. Despite renewable growth, Europe still faces challenges in reducing its reliance on gas due to fluctuations in hydro and wind generation.
Key points
- Solar power has saved Europe over €37 billion since the start of the war on Iran.
- Solar became the EU's largest single source of electricity in June, providing 25% of its power.
- The war in Iran and the blockade of the Strait of Hormuz caused LNG prices to surge by 126%, rising from €32 to around €72 per megawatt hour.
- Countries like Spain and the UK have expanded their renewable capacities significantly, though weak hydro and wind generation have temporarily increased gas-fired electricity generation.
- Total EU gas-fired electricity generation increased by 3.9% year-on-year in the second quarter, highlighting the ongoing need for more solar infrastructure.