Grid, Supply Woes May Slow EU’s Energy Transition Push: EIC

Europe’s renewable energy sector faces a potential slowdown, burdened by grid saturation, permitting delays, and industrial bottlenecks, according to the Energy Industries Council, an energy trade association and data, events, and market insights provider new report. It finds more than half of the 230 new energy projects added in 2024 are renewable, but the continent’s 2030 climate targets are coming under pressure as infrastructure struggles to keep pace.

Offshore wind, a key component of Europe’s energy transition, has reached 49 GW installed capacity and accounts for 30% of the region’s total wind output. That said, several large-scale projects have been delayed by supply chain disruptions and limited port infrastructure.

The findings are based on EICAssetMap proprietary data, which tracks operational assets across the energy spectrum. The Europe OPEX Insight Report offers a detailed sectoral breakdown across renewables, traditional fuels, and emerging technologies. 

“There are specific bottlenecks in some industries that will take a long time to remove, like ports in Scotland or in the UK for offshore wind,” said Luiza Marcolongo, EIC Energy Analyst and author of the report. The report shows that shortages in heavy-lift cranes and fit-for-purpose port facilities were particularly acute, citing the delay of the UK’s Sofia Offshore Wind Farm to 2026 as a prime example. 

Key Findings Of The Report

Solar capacity continued to surge, doubling from 23 GW in 2020 to 46 GW by the end of 2024, though not without challenges. Spain overtook England as the region’s leader, driven by strong policy support and robust project pipelines. The report cited Germany’s Witnitz Solar Park (605 MW) and Greece’s Faethon Solar Farm (504 MW) as key contributors.

The report refers to structural challenges that could stall progress in solar energy. “The pace of permitting and the condition of the grid are defining the ceiling on how fast we can decarbonise,” said Marcolongo.

Battery storage is a key emerging growth area, with 83 of the 84 new storage projects since 2020 relying on battery technology. The UK’s Battery Strategy aims for supply chain dominance by 2030, while large-scale developments in Belgium and Romania signal broader regional uptake.

Grid Integration Remains A Hurdle

“There’s a disconnect between the growth in variable renewables and the flexibility needed in the system to handle it,” Marcolongo said. “Storage helps, but without a coherent grid plan, it becomes a stopgap.”

“The way we think about energy distribution hasn’t quite caught up with the shift in how we now produce electricity—moving from centralised to decentralised systems,” said Claas Helmke, EIC’s Regional Director for Continental Europe. “To keep grid upgrades and expansion costs down, we need system-level thinking, more flexible grids and pricing, better demand-side management, and smarter storage solutions.”

Hydrogen, often seen as the long-term solution to industrial decarbonisation, remains at an early stage of commercialisation. The report records 41 new hydrogen plants commissioned since 2020, with Germany leading the way. But most remain small-scale or pilot projects, and key technical limitations, including underdeveloped demand infrastructure, have yet to be addressed.

Marcolongo noted that despite strong government commitments, execution lags. “Hydrogen has momentum on paper, but we are far from scalable offshore production. That’s not a five-year problem, it certainly is a systemic one,” the report’s author said.

The report details that different national strategies are impacting the overall progress. Poland, for example, is expanding solar and gas capacity but remains heavily reliant on coal, which is projected to provide 22% of its electricity by 2030. Denmark, on the other hand, leads the Climate Change Performance Index but has slowed decarbonisation in hard-to-abate sectors, such as industrial processes. 

As Europe enters the second half of the critical 2020–2030 climate window, the report paints a picture of momentum tempered by material constraints. “We’ve shown Europe can build fast,” said Thomas Bacon, EIC Market Intelligence Manager for OPEX and Decommissioning. “The question is whether it can build smart, and more importantly, build enough to achieve ssits climate goals as well as energy security needs.”