Europe renewable energy market seen doubling to 2,540 GW by 2035

Europe’s renewable energy market is projected to grow from 1,282 GW in 2026 to about 2,540 GW by 2035, driven by policy mandates, lower technology costs and stronger corporate demand for clean power. Energy storage, offshore wind and hybrid projects are emerging as the main enablers of that expansion.

Why it matters: - Europe’s renewable buildout is set to nearly double over the next decade, reshaping power supply, grid investment needs and project pipelines across the region. - The forecast points to a larger market for developers, turbine makers, storage providers and corporate clean-power buyers as the continent replaces coal and scales low-carbon generation. - Advancements in energy storage technologies are a key driver because they make variable wind and solar easier to integrate at higher levels.

What happened: - Market Research Future projected Europe’s renewable energy market will rise from 1,282 GW in 2026 to about 2,540 GW by 2035. - The forecast implies a 7.9% compound annual growth rate over the 2026-2035 period. - The market covers solar, wind, hydropower, bioenergy, geothermal and ocean energy across utilities, commercial and industrial users, and residential customers. - The report was published Aug. 24, 2026. - A free sample report is available here.

The details: - The European Commission’s target requires at least a 42.5% renewable share in gross final energy consumption by 2030. - Public and private investment commitments topped EUR 210 billion between 2022 and 2024. - The revised Renewable Energy Directive, known as RED III, requires faster permitting, renewable acceleration areas and grid connection timelines for approved projects. - Coal-fired plants that once supplied more than 25% of Europe’s electricity are being retired and replaced by solar, onshore wind, offshore wind and battery-backed hybrid projects. - The European Investment Bank committed EUR 36 billion to climate-related projects in 2023. - Solar module prices in Europe fell below EUR 0.12 per watt in late 2024, down 40% from 2022 peaks. - Floating offshore wind has more than 250 GW of technically exploitable potential across Europe. - Hybrid renewable-plus-storage projects are becoming the dominant format in new tenders in Spain, Italy and Germany. - Germany holds about 24% of installed capacity, while Spain holds about 16%. - The Netherlands is the fastest-growing country market, with a projected CAGR of 10.2%. - By 2035, Europe is expected to add more than 1,250 GW of new capacity. - Wind is projected to grow at a 9.4% CAGR, while solar keeps the largest capacity share.

Between the lines: - The report shows Europe’s transition is no longer just about building more renewables. It is about building the grid, storage and permitting system needed to absorb them. - The strongest growth is concentrated in technologies that solve integration problems, such as offshore wind and hybrid storage projects. - Germany and Spain remain the scale markets, but the Netherlands and parts of Central and Eastern Europe look like the next growth pockets. - The competitive landscape remains fragmented, which gives room for both large utilities and specialized developers.

What’s next: - Offshore wind capacity is expected to rise from about 35 GW in 2025 to more than 110 GW by 2035. - Germany’s renewable targets call for 80% renewable electricity by 2030, including annual solar additions of 22 GW and onshore wind additions of 10 GW. - The U.K. is targeting 50 GW of offshore wind by 2030. - Spain’s PNIEC 2030 plan targets 81 GW of wind and solar combined. - France has six major offshore wind projects totaling 8 GW in development. - Italy is targeting 50 GW of solar by 2030. - The Netherlands is targeting 21 GW of offshore wind by 2030. - Green hydrogen deployment is projected to reach 17.5 GW of electrolyzer capacity by 2030 under the EU Hydrogen Strategy. - More market information is available in the full report here.

The bottom line: - Europe’s renewable market is growing fast, but the next phase depends as much on storage, grids and permitting as on new generation capacity.