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Energy

Ninth report on the state of the energy union

2024 State of the Energy Union report was published on 11 September 2024. It describes how the EU has managed unprecedented challenges in the energy policy landscape during this Commission’s mandate, equipping the EU with a regulatory framework for pursuing the clean energy transition and laying the foundations for renewed economic growth and competitiveness.

At the same stage, over the past years, the EU has managed to withstand critical risks to its security of energy supply, regain control over the energy market and prices, and accelerate the transition towards climate neutrality. 

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Main findings of the report

Significant progress has been made on renewable energy. Wind power overtook gas to become the EU’s second largest source of electricity behind nuclear, and by the first half of 2024 renewables generated 50% of electricity in the EU. 

In 2022 the EU’s primary energy consumption renewed its downward trend, falling by 4.1%. Nevertheless, energy efficiency efforts will need to be stepped up further for the EU to meet the 11.7% final energy consumption reduction target by 2030. 

Further improvement is needed, not least in the electrification of heating equipment across the board and the rate of renovation of buildings

Strengthened efforts are needed to address high energy prices. This is key to improve the competitiveness of EU industry, and to accelerate investments in Europe’s integrated infrastructure networks, which are essential for the electrification of the European economy.

The report also recalls that all EU countries must submit their final updated National Energy and Climate Plans as soon as possible, to ensure collective achievement of the 2030 energy and climate goals.

The EU has continued to stand by Ukraine in the face of relentless Russian attacks on its energy system. The synchronisation of the Ukrainian and Moldovan grids with the Continental European Network helped stabilise Ukraine’s electricity system and by 31 July 2024, over 40% of all donations from EU countries were dedicated to the energy sector, with the Union Civil Protection Mechanism’s total contribution estimated at over €900 million. 

It recalls the importance of the Net-Zero Industry Act and the Critical Raw Materials Act, alongside the reform of the Electricity Market Design to face the competitiveness challenges that EU manufacturers face in net-zero technologies, on global and domestic markets.