Energy Transition in the Power Sector in Europe: State of Affairs in 2016

In 2016, the European power sector saw a significant shift from coal to gas generation, which drove a 4.5% decrease in CO2 emissions. While renewable energy's share of the electricity mix rose slightly to 29.6%, growth was below previous trends due to poor weather conditions, although record-low auction prices for wind and solar suggest future potential. Electricity consumption remained largely stagnant, barely offsetting economic growth. The EU Emissions Trading System (EU-ETS) continued to suffer from a structural oversupply, with the surplus exceeding 3 billion tonnes of CO2 for the first time.

• European power sector CO2 emissions decreased by 4.5% in 2016, falling from 1,066 million tonnes in 2015 to 1,018 million tonnes. This was primarily driven by a shift where coal generation fell by 94 TWh and gas generation increased by 101 TWh.
• The share of renewable energy in the European electricity mix rose slightly from 29.2% to 29.6% in 2016. Growth was hampered by below-average solar and wind conditions compared to 2015, and biomass generation growth slowed significantly, increasing by only 3 TWh compared to a 2010–2015 average of 11 TWh.
• Renewable energy costs reached record lows in 2016. In Denmark, offshore wind auction results hit 49.9 Euros/MWh and solar hit 53.8 Euros/MWh. German solar auction prices fell 14% in 2016, dropping from 80 Euros/MWh in December 2015 to 69 Euros/MWh in December 2016.
• European electricity consumption increased by 0.5% in 2016, returning to 2013 levels. This suggests that energy efficiency gains are sufficient to prevent significant rises in consumption relative to GDP growth, but are not yet driving a structural decline in electricity use.
• The EU-ETS structural oversupply exceeded 3 billion tonnes of CO2 for the first time in 2016, as emissions remained structurally below the cap. In 2016 alone, the structural surplus increased by approximately 255 million tonnes.
• The shift from coal to gas in 2016 was driven by four roughly equal factors: the closure of 8 GW of old coal plants (mostly in the UK), permanent switching due to the UK's carbon price support, temporary switching due to low gas prices, and one-off changes in nuclear and hydro generation.

APA

Jones, D., Kleiner, M. M., Buck, M., & Graichen, D. P. (2017). Energy Transition in the Power Sector in Europe: State of Affairs in 2016. Ember. https://ember-energy.org/app/uploads/2020/03/Energy-Transition-in-the-Power-Sector-in-Europe-2016.pdf

Chicago

Jones, Dave, Mara Marthe Kleiner, Matthias Buck, and Dr. Patrick Graichen. Energy Transition in the Power Sector in Europe: State of Affairs in 2016. Ember, 2017. https://ember-energy.org/app/uploads/2020/03/Energy-Transition-in-the-Power-Sector-in-Europe-2016.pdf.

Wikipedia

{{cite report |last1=Jones |first1=Dave |last2=Kleiner |first2=Mara Marthe |last3=Buck |first3=Matthias |last4=Graichen |first4=Dr. Patrick |title=Energy Transition in the Power Sector in Europe: State of Affairs in 2016 |publisher=Ember |date=January 2017 |url=https://ember-energy.org/app/uploads/2020/03/Energy-Transition-in-the-Power-Sector-in-Europe-2016.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{jones2017energy, author = {Jones, Dave and Kleiner, Mara Marthe and Buck, Matthias and Graichen, Dr. Patrick}, title = {{Energy Transition in the Power Sector in Europe: State of Affairs in 2016}}, institution = {Ember}, year = {2017}, month = jan, url = {https://ember-energy.org/app/uploads/2020/03/Energy-Transition-in-the-Power-Sector-in-Europe-2016.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }