A renewables-driven energy system could save Europe trillions of euros
But the true value isn’t simply that renewables are the cheapest form of power generation. The real question is: what about the costs of grids, storage, and backup? WindEurope, in collaboration with Hitachi Energy, shows that even after accounting for grids, storage, and backup, a high-renewables system remains far cheaper than alternatives.
Together, WindEurope and Hitachi Energy mapped the total system costs for five scenarios: four aiming for net zero and one slower-transition path where climate targets aren’t met.
If Europe relies more on nuclear, hydrogen, or carbon capture and storage (CCS), those paths would be more expensive than a renewables-led approach. By 2050, the cost gap ranges from €487 billion to €860 billion in favor of renewables.
In fact, a renewables-based system is €1.6 trillion cheaper than a route that fails to reach net zero. Much of this difference stems from residual fuel expenses and carbon costs under the slow-transition scenario. By 2035, renewables already save €331 billion versus the slow-transition path.
The cumulative savings from a renewables-based energy system equate to Europe’s annual healthcare expenditure and amount to about 9% of the European Union’s GDP.
Transitioning to renewables means a substantial shift toward electricity in the energy mix, which requires heavy investment—especially in electrifying heavy industry. The study accounts for this investment, and even after factoring in electrification, the renewables scenario remains the most economical overall.
A system dominated by renewables also enhances stability and resilience, offering a robust energy security margin with generation well above demand in many periods.
Moreover, renewables deliver the strongest resistance to external shocks, such as the disruption caused by Russia’s invasion of Ukraine. Among all scenarios, the renewables path shows the lowest reliance on energy fuel imports: by 2050 imports constitute only 22% of total energy supply, compared with 54% in the slow-transition scenario.
Beyond economics, renewables bring additional benefits, notably jobs. Today, Europe’s wind industry supports about 440,000 jobs and is projected to reach 600,000 by 2030.
There is no upside to reducing climate ambitions or delaying renewables. The IEA’s 2025 World Energy Outlook famously called this the Age of Electricity, with renewables best positioned to lead. Embracing this path strengthens Europe’s competitive edge.
The transition is already underway. Looking ahead to 2050, it’s instructive to compare with 2000: wind and solar together accounted for 0.8% of Europe’s electricity in 2000; today they represent about 30%. Meanwhile, European emissions have fallen by nearly one-third while the economy has grown by roughly 45%. The momentum is real—let’s build on it.
For the full study, see: https://windeurope.org/data/products/energy-system-costs/
