Savings accelerated during this summer as higher volumes of solar power became available and fossil fuel prices climbed.
This summer's heatwaves and droughts reduced the efficiency of, or even shut down, some thermal power plants. Reduced reservoir levels limited hydropower output while low cooling water levels affected nuclear generation. At the same time, the extreme heat increased the demand for air conditioning. Power prices spiked. The burden on Europe’s citizens and businesses rose.
“Solar has been delivering huge financial benefits for Europe since the latest fossil fuel crisis in the Middle East began” said Walburga Hemetsberger, CEO of SolarPower Europe. “The Iran War deepened the turmoil in energy markets generated by Russia’s invasion of Ukraine. A dependency on the flow of oil and gas is clearly a risky energy strategy. Pipelines and shipping lanes have repeatedly proven vulnerable to disruption. This is not a hole the fossil fuel sector can drill us out of. The solution is above us and Europe must grab it with both hands.”
Amid renewed geopolitical tensions and volatility in global fossil fuel markets, EU energy security remains exposed to external supply disruptions and price spikes. Accelerating domestic power generation that is not reliant on imported fuels is therefore a strategic necessity, the analysis argues.
It shows how solar PV, combined with storage and other flexibility solutions, can act as a powerful buffer for EU citizens and businesses by reducing energy price volatility and reducing import dependence. The analysis demonstrates that EU solar electricity is already delivering substantial savings on fossil fuel imports and protecting consumers from extreme price volatility. Further deploying solar and storage capacity across the EU will allow massive fossil fuel import cost savings in the future.
Key findings:
Solar PV is already saving the EU billions of euros in fossil fuel import costs during periods of geopolitical disruption.
In 2026 alone, EU solar electricity generation is expected to avoid tens of billions of euros in gas imports, depending on gas price developments.
Faster solar deployment would deliver additional savings and further reduce Europe’s exposure to supply shocks.
Storage and flexibility solutions play a critical role in maximising the value of solar by shifting supply, shaving peaks, and limiting the impact of gas prices on power markets.
Electrification of transport and heating, increasingly powered by renewables, is delivering additional structural reductions in oil and gas imports.
Businesses can significantly reduce energy costs and risk exposure through solar PPAs, on-site solar, and battery storage.
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