That sum could have funded around 8 GW of new solar capacity, equivalent to 12% of the EU's total installations last year, or 44 GWh of utility-scale battery storage, more than three times what the bloc added in that segment in 2024. At the peak of the price spike in March, solar was saving the EU an average of €110 million per day.
Natural gas prices have remained elevated since 1 March, when tensions with Iran escalated. Heavily constrained shipping through the Strait of Hormuz, combined with damage to fossil fuel infrastructure, drove prices sharply higher. European gas futures peaked above €60/MWh in March, double the €30/MWh average of the preceding months. The medium-term outlook remains deeply uncertain.
IRENA charts course from crisis to energy security
"Solar is showing the benefits of a renewable-first energy system," said Walburga Hemetsberger, CEO of SolarPower Europe. "The savings since 1 March are equivalent to Belgium's recent annual defence budgets. This is just a sample of what is possible. The energy crisis following the invasion of Ukraine is estimated to have cost €1.7 trillion as bills spiked and governments moved to shield billpayers. Cutting the impact of gas on wholesale power prices must now be a priority."
Report: solar-led shift could halve EU power system costs
Under a Solar+ scenario modelled by SolarPower Europe, broader deployment of solar and energy storage would halve EU power system costs by 2030. "By adding more non-fossil flexibility in our system, we can reduce the impact gas has on setting electricity prices," Hemetsberger added. "AccelerateEU is the first step, but we need concrete measures that can rapidly encourage higher levels of deployment and deeper electrification of our society and economy." The European Commission unveiled its emergency toolbox, AccelerateEU, last month. It is designed to deliver accelerated action to secure affordable and reliable energy for EU citizens and businesses against the backdrop of the ongoing crisis. (hcn)
