Going green could save Europe €1 trillion in fossil fuel costs

By upgrading its power system and quadrupling growth in wind and solar capacity, Europe could save an estimated €1 trillion by 2035.

That's the finding of a new report from energy think-tank Ember. And, even better? Researchers believe a 95% clean power system in Europe can be achieved by 2035 - all without threatening supply or adding additional cost to existing plans for a smaller and more polluting electricity supply.

"Scaling clean power is a win-win-win," explains Chris Rosslowe, Ember's senior energy analyst. "It will save money, put Europe on track for its climate commitments and reduce its reliance on imported fossil fuels. Europe should invest now for a huge payback by 2035."

The 'New Generation' study modelled the European electricity system to find the cheapest pathways to 2050 to limit global warming to 1.5°C.

It found that all three pathways lead to a clean power system by 2035 (95% low-emission, 70%-80% wind and solar). And, while initial investment could be as high as €750 billion, savings on fossil fuels could reach €1 trillion in total between now and 2035 - a figure that could be an underestimate if high fossil fuel prices persist.

Such a move would also bring benefits to the climate, human health and energy security, argue the report's authors.

The report's models see coal phased out entirely by 2030 and unabated gas cut to less than 5% of generation by the middle of the next decade.

To replace it?

Solar capacity needs to expand by up to nine times and wind capacity needs to quadruple. Emerging energy technologies will help manage supply and demand issues when solar and wind outputs are low, the authors say.

Such emerging technology is the focus of the World Economic Forum's First Movers Coalition, which saw its membership expand at Davos 2022. The coalition aims to use the purchasing power of the world's largest companies to drive the development and evolution of zero-carbon technologies in the world's hardest-to-abate sectors.