New SolarPower Europe Report Shows Renewable-And-Storage Power System Could Halve Europe’s Electricity Operating Costs By 2030

SolarPower Europe has released its new Solar+ report, showing that by 2030, Europe could cut its electricity system operating costs by half if it adopts a renewable- and storage-based power system. The analysis compares current trends with a more ambitious Solar+ scenario and finds that both pathways deliver cost savings, but the higher-renewables scenario leads to significantly greater benefits.

According to the report, electricity system operating costs could fall by €55 billion—about 49 percent—by 2030 under the Solar+ scenario compared to 2025 levels. Even under a business-as-usual approach that follows today’s pace of solar deployment, operating costs would still decline by €33 billion, or 29 percent, by 2030. The savings are largely driven by reduced fossil fuel use and lower dependence on energy imports.

Walburga Hemetsberger, CEO of SolarPower Europe, emphasized that transitioning to a system built on renewables is fundamentally more cost-effective than relying on fossil fuels, whose prices remain unpredictable and volatile. She noted that long-term investment in renewables, energy storage, and non-fossil flexibility continues to deliver value, while fossil fuel dependence undermines Europe’s stability and energy independence.

The Solar+ report, titled Solar+: An EU pathway to achieve renewable targets, price affordability, and energy security, evaluates two scenarios: a Base Case reflecting current deployment rates, and the more ambitious Solar+ pathway aligned with Europe’s 2030 energy and climate goals. Both scenarios confirm the central role of solar power, storage, and electrification in achieving a more efficient and resilient energy system.

The Solar+ scenario, however, demonstrates how rapidly and cost-effectively solar and storage capacity can be scaled.To examine how renewables influence electricity prices, the report analyzes how often renewable sources set the marginal price of electricity. In the Solar+ scenario, variable renewables—mainly wind and solar—set power prices more frequently, rising from 14 percent of hours in the Base Case to 19 percent.

This reduces the need for gas-fired or thermal generation to determine prices. When renewables set the price, electricity is generally cheaper, leading to lower wholesale day-ahead prices. By 2030, average prices could fall by 14 percent under the Solar+ scenario, with even larger reductions—up to 25 percent—in high-price markets such as Germany.

The report also highlights that greater system flexibility is essential to manage the variability of renewables. Adequate flexibility can narrow the gap between low-price periods, when renewable generation is abundant, and high-price periods driven by peak demand. Importantly, the analysis shows that it is possible to lower average electricity prices while still maintaining a strong investment case for solar.

Under the Solar+ scenario, the number of hours with negative electricity prices remains stable at fewer than 500 hours per year through 2030, ensuring confidence for renewable investors while delivering more than a 10 percent drop in wholesale prices for consumers.Battery storage capacity expands significantly in both modeled scenarios.

By 2030, EU battery storage could reach 116 GW / 267 GWh in the Base Case and 171 GW / 598 GWh in the Solar+ pathway. Storage duration is also expected to increase, from an average of 1.9 hours today to 2.3 hours under the Base Case and 3.5 hours under the Solar+ scenario. This growth reflects the increasingly important role batteries will play in balancing the grid and ensuring reliable power supply.

Sonja Risteska, Head of the Battery Storage Europe Platform, noted that the rapid expansion of battery storage shows clear progress toward greater system flexibility. However, even the higher-ambition Solar+ scenario does not fully match the amount of storage Europe will ultimately require. She stressed the need for stronger and more coordinated policy efforts to accelerate flexibility investments, ensuring that renewable energy can fully support Europe’s energy security and affordability goals.

To unlock the full potential of the Solar+ pathway, SolarPower Europe calls on EU institutions and Member States to take two major policy steps. First, they recommend establishing an EU-wide flexibility strategy with a dedicated action plan for battery storage.

This would ensure that flexibility solutions such as battery storage and demand response are embedded in planning, properly valued, and supported by clear market rules. Second, they urge the adoption of a coordinated EU electrification action plan.

Accelerated electrification of buildings, transport, and industry—supported by appropriate price signals, infrastructure, and permitting reforms—is crucial to make clean electrified technologies the most affordable choice for consumers and businesses.The Solar+ report, developed with support from Rystad Energy, was officially launched in Brussels during the annual SolarPower Summit.