European power and renewables: what to look for in 2024

European power and renewables markets enter 2024 with relative stability compared to one year prior. Power prices have fallen, the French nuclear fleet’s production has rebounded, hydro reserves are largely replenished and wind power supply chain costs appear to be under control. Still, the acceleration of Europe’s transition from dispatchable thermal capacity towards the variable output of emissions-free renewables creates challenges.

Furthermore, EU policy seeks to accelerate investment in the transition. Following updated renewables and emissions targets unfurled in REPowerEU, European governments submitted updated National Energy & Climate Plans (NECPs) last year.

While the updated plans will be finalised by the end of this year, our initial examination of their content suggests the sum of their ambition falls far short of the EU’s 42.5% of total energy from renewables goal. Despite this initial failing – something the Commission will seek to resolve – the already upgraded objectives of updated NECPs will necessitate additional route-to-market mechanisms, elevated auction quotas and raised bid price caps.

In our 2024 European power and renewables outlook report, members of Wood Mackenzie’s power and renewables markets and technology teams offer their perspectives on the year ahead.

Fill out the form at the top of the page to get the full outlook for Europe's power and renewables markets, which explores:

• Power markets: European power markets will continue to be tested in 2024 as renewables increase their share of the region’s supply mix.
• Onshore wind power: Onshore wind growth in 2024 will depend on the EU Wind Action Plan being translated into action.
• Offshore wind power: Last year forced the sector to look down; in 2024 it must also look up.
• Solar PV: Annual market growth will slow following three years of double digit growth.
• Storage: A surge in storage projects as the project margins prove themselves and governments finally recognise the role of flexibility assets.

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