Emerging Trends Insights from 2021

The 2021 gas crisis caused a paradigm shift in the EU's electricity transition, with skyrocketing prices making fossil gas more expensive than coal and enhancing the competitiveness of renewables. For the first time in Europe, combined wind and solar generation (547 TWh) exceeded gas (524 TWh). While solar growth is surging in countries like Spain and the Netherlands, it remains stagnant in others such as Italy, Czechia, and Romania. Additionally, the structural decline of nuclear power in the EU has slowed decarbonisation, as a significant portion of renewable growth has replaced lost nuclear output rather than fossil fuels.

• The 2021 gas crisis severely damaged the role of fossil gas as a 'transition fuel' in the EU power sector because prices rose exponentially, making gas the most expensive electricity generation method—costing more than both hard coal and lignite.
• Fossil gas prices in the EU surged due to a cold northern hemisphere winter, increased demand in Asia and South America diverting LNG, the lifting of Covid-19 restrictions, and lower-than-expected imports from Russia. The TTF day-ahead benchmark rose 585% in December 2021 compared to December 2020.
• In 2021, combined wind and solar power generation in Europe (547 TWh) surpassed gas generation (524 TWh) for the first time. Solar power grew significantly, producing over 25% more power in 2021 than in 2019 and accounting for 6% of Europe's electricity.
• Solar growth is highly uneven across Europe; Spain nearly doubled its generation from 15 TWh in 2019 to 26 TWh in 2021, and the Netherlands saw a 115% increase (+6 TWh). Conversely, growth has plateaued in Italy and remained almost non-existent in Czechia and Romania since 2019.
• The structural decline of nuclear power in the EU has hindered decarbonisation, as approximately one-third of wind and solar growth over the last decade replaced lost nuclear output instead of fossil fuels. It is estimated that over 75% of wind and solar growth in 2022 will replace declining nuclear output.

APA

Ember (2022). Emerging Trends Insights from 2021. https://ember-energy.org/chapter/emerging-trends-eer2022/

Chicago

Ember. Emerging Trends Insights from 2021. 2022. https://ember-energy.org/chapter/emerging-trends-eer2022/.

Wikipedia

{{cite report |author=Ember |title=Emerging Trends Insights from 2021 |date=1 February 2022 |url=https://ember-energy.org/chapter/emerging-trends-eer2022/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ember2022emerging, author = {{Ember}}, title = {{Emerging Trends Insights from 2021}}, institution = {Ember}, year = {2022}, month = feb, url = {https://ember-energy.org/chapter/emerging-trends-eer2022/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }