Category: Knowledge Center Europe

Estonia’s Energy Transition: Paper

Estonia’s energy transition, driven by the rapid decline of oil shale generation, faces a trilemma between security, affordability, and decarbonization. Using a structural general-equilibrium framework, this paper evaluates the macroeconomic effects of Estonia’s new energy plan, combined with deeper European electricity market integration, EU mitigation policies, the impact of AI-related datacenters and broader electrification pressures. Results show that expanding domestic supply and market integration lowers long-term prices by one-third, increases GDP, reduces import dependence, and supports emissions reduction.

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Scaling Community Energy in the UK: Brief

This SEI brief aims to inform how the UK’s ambition to expand the number of community-owned, renewable energy sources can translate into practical delivery. It outlines key hurdles that community energy efforts face and makes recommendations to overcome them. Its insights are drawn from discussion groups convened for this purpose, bringing together community energy practitioners, support organizations’ representatives, and experts from the sector. The UK has signalled renewed ambition to invest in efforts to accelerate the growth of community-owned energy to help communities “reap the benefits of clean, secure, home-grown energy” (Department for Energy Security and Net Zero, 2024).

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Energy Subsidies in the EU: Report

Total energy subsidies in the EU in 2024 were worth EUR 340 billion, a slight decrease (-5%) compared to 2023 (EUR 360 billion) and significantly lower (-25%) than 2022, at the height of the crisis (EUR 457 billion). However, they remained considerably above the historical average (EUR 190 billion in 2015-2019). The share of non-targeted energy subsidies, benefiting the use of all energy carriers across all end-users in a cross-sectoral way, remained high at almost half of all energy subsidies (48%) and more than twice the historic average (21% in 2015-2019). 

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Employment Implications of Clean Energy in EU: Report

EU is rapidly transforming its economy to achieve climate neutrality, guided by legally binding emissions targets. At the same time, it faces ongoing geopolitical uncertainties, including recent tensions in the Middle East. As such, it is necessary to accelerate the EU′s clean transition and further reduce its dependence on imported fossil fuels and vulnerability to energy price shocks. Europe′s transition to climate neutrality is reshaping its industrial and employment landscape, although clean energy technologies in the EU face structural challenges such as relatively high energy and labour costs, permitting and planning bottlenecks, and some limitations in access to critical raw materials.

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Great British Energy for UK’s Energy Security: Brief

The brief suggests that to deliver the government’s mission for greater control over energy markets and industry, GBE must meet three conditions: build institutional capacity aligned with its ambition to establish a world-leading energy company by 2026, focus its resources on areas of highest impact in the first two years and demonstrate delivery in key areas to ensure its projects reduce energy bills for communities, build strong supply chains and support local jobs by 2028 and establish financial credibility to be in a strong position to scale its impact by 2030.

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Georgia’s Climate and Energy Planning: IRENA Report

Georgia, like many other countries, is increasingly recognising the importance of aligning its national climate and energy planning instruments to ensure effective implementation, avoid duplication of efforts and provide clear signals to investors and stakeholders. As governments simultaneously develop or update multiple plans, the challenge of ensuring consistency across different timelines, institutional mandates and modelling approaches has become more prominent.

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Evolution of Energy Communities in EU: Report

The European energy transition is marked by the rapid spread of renewable energy sources, electrification of end uses, decentralisation of generation and increasing system stress driven by climate change. These transformations expose the limits of traditional, centralised electricity system architectures and require new organisational and governance models capable of coordinating distributed resources while preserving reliability, efficiency and social legitimacy. Scientific literature and recent European policy frameworks converge on the role of energy communities (ECs) as a key socioeconomic and technical innovation to address these challenges.

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Solar Supports European Grid Amid Extreme Heat: Report

During June and July 2026, successive heatwaves pushed temperatures above 40°C in many parts of Europe, driving up electricity demand as air conditioning use soared, while disrupting nuclear, gas, coal and hydropower generation. The boost in solar output helped stabilise grids as other power sources struggled but this was accompanied with high prices and supply scarcity most pronounced in the evenings. As extreme heat becomes more common, governments and regulators will need to make greater use of proven solutions, including battery storage and demand response.

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Norway Critical Minerals Review: Report

The analysis covers Norway’s end-to-end approach, encompassing exploration, extraction, refining, recycling and downstream integration into advanced industries. The report identifies several areas of strength in Norway’s approach. These include its substantial geological potential, its advanced innovation and recycling sectors, and its active participation in European policy frameworks. The report concludes that Norway stands at a strategic crossroads. Decisive policy action, targeted investment in innovation, and enhanced stakeholder collaboration will be critical for Norway to secure its position as a leader in sustainable critical minerals supply.

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Hybridisation Potential of Hydro Plants in EU: Report

The report assesses the hybridisation potential of hydropower plants in seven EU countries, which together account for 93 GW of the bloc’s 131 GW of hydropower capacity. It examines how much wind and solar can be added behind the meter of existing hydro assets, bypassing grid constraints, without affecting dispatch behaviour of existing plants or impacting sites near protected areas. 25 GW of wind and solar can be added to existing hydropower plants across seven EU countries, taking into account environmental constraints. Through hybridisation, Austria, Bulgaria, France, Italy, Portugal, Romania and Spain could integrate 18% of the new renewables anticipated by 2030.

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UK Clean Flexibility Roadmap: Report

The report is a comprehensive and actionable plan for how to achieve the flexibility required to deliver clean power by 2030 and net zero by 2050. This roadmap shifts focus from the delivery of important but intermediate milestones to the longer-term outcomes envisioned for consumers and the wider electricity system. The report includes some of the following commitments: The government will rapidly assess the feasibility of consumers accessing government support for low carbon technologies to do so using a flexible tariff, with the option for the consumer to opt out. The government will take primary legislative powers when parliamentary time allows to enable removal of final consumption levies for demand turn up, supporting the use of consumer-led flexibility in addressing network constraints and boosting the commercial case for bidirectional electric vehicle chargers and domestic batteries.

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Unlocking Circular Economy in Europe: Report 

The circular economy is expected to play a key role in strengthening Europe′s competitiveness while also helping to ensure that its environmental objectives are achieved. Applying circular economy principles could boost EU gross domestic product (GDP) by 0.5% by 2030. At the same time, the European remanufacturing market alone could grow from EUR 31 billion to EUR 100 billion by 2030. The transition is also projected to generate around 700,000 new green jobs, particularly in the repair, remanufacturing and recycling sectors; the Clean Industrial Deal estimates 500,000 new jobs in the remanufacturing sector. The report gives authoritative information on the scale of financing needed for this transition and the necessary conditions for efficient implementation and effective change.

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Boosting Community Energy in the UK: Report

The report suggests that community ownership of energy resources is in danger of being left behind in the transition unless the Department takes urgent action which will have two direct consequences: areas which host large scale renewable projects see pylons but none of the profits from renewables and public support for the 2030 targets and for the renewable sector will disappear. The report further recommends the UK Government to use the Energy Independence Bill currently before Parliament to unlock community ownership as a key part of the transition and energy security of the UK.

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Global Hydrogen Review 2026: Report 

The conflict in the Middle East has disrupted global production and trade of hydrogen-based products. The Middle East is a major producer of hydrogen-based products, and the conflict has strongly impacted their production. The consequences of the conflict reach far beyond the Middle East as the region is a major player in global trade for hydrogen-based products. Global fertiliser markets have been particularly affected, with potential implications for the food supply chain. The short-term outlook for low-emissions hydrogen remains uncertain with large differences across regions. The pipeline of announced projects for low-emissions hydrogen production has shrunk to 27 Mt by 2030, mostly due to delays post 2030 and cancellations.

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Renewables Shield Spain from Rising Gas Prices: Report

Electricity market prices in Spain remain among Europe’s lowest despite elevated gas prices since March 2026. Strong growth of renewables in the Iberian power system has significantly weakened the link between gas and electricity prices since the gas crisis of 2021-2024. This has effectively shielded Spanish electricity prices from the gas price spike following the US-Israel war with Iran. Spanish billpayers are avoiding costs of €10 per month thanks to shielding of electricity prices. If electricity prices were still linked to gas prices as strongly as in 2021, a typical household on the regulated tariff would be paying €10 more per month in electricity bills due to elevated gas prices since March 2026.

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Energy in Northern Island 2026: Report

Wind remains the dominant source of renewable generation of electricity in Northern Ireland accounting for 72% of total renewable generation volumes in 2025. Such reliance on wind does mean that monthly renewable generation volumes in Northern Ireland can be prone to large fluctuations, due to changing weather conditions. Around two thirds of renewable generation capacity and generation volumes was accounted for by three of the eleven Northern Ireland district council areas namely: Causeway Coast & Glens; Derry City & Strabane; and Fermanagh & Omagh.

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Luxembourg Energy Policy Review: Report

Luxembourg’s climate and energy goals are aligned with the EU targets for a 55% reduction in greenhouse gas emissions by 2030 and a 90% reduction by 2040, and it has legally enshrined net zero emissions by 2050. Despite rapid population and economic growth, energy-related emissions have already fallen by 40% since 2005, reflecting the success of early measures. Public support for climate action is also robust, providing a strong foundation for the next phase of the transition. To meet its targets, however, Luxembourg will need to implement more ambitious decarbonisation policies while carefully managing energy security and affordability considerations. 

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Austria Energy Policy Review: Report

Austria has one of the most ambitious climate and energy targets in the world; achieving them requires actionable delivery strategies and adequate funding. Austria has the highest share of renewable energy in electricity consumption in the European Union and is the first European country to develop a pioneering approach to integrated energy system planning. However, the gap between ambition and delivery is widening. This report provides advice on how Austria can achieve its policy goals with particular focus on two areas: energy system flexibility and industrial competitiveness and decarbonisation.

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Energy Transition in the Western Balkans: Report

The Western Balkans are entering the energy transition under structurally more demanding conditions than most EU Member States. High carbon intensity, ageing energy infrastructure, and continued reliance on coal and hydropower intersect with increasing pressures stemming from EU climate policy, market integration, and the introduction of the Carbon Border Adjustment Mechanism. This report examines the implications of decarbonisation for competitiveness, energy security, and economic development across the Western Balkans. While renewable energy deployment is accelerating, progress is constrained by outdated grid infrastructure, limited institutional capacity, and restricted access to finance. 

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Accelerating Solar and Storage Deployment in EU: Report

The report demonstrates that scaling up solar power and battery storage, as the cheapest and most versatile forms of power generation, offers the most effective and immediate pathway to deliver on all three pillars of the energy trilemma: sustainability, affordability, and security. The report identifies a sweet spot where consumers benefit from lower average prices, while preserving the business case for large-scale solar investments, which has become increasingly unattractive as more frequent negative price-hour events decrease the value of solar power.

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