In some of Europe's sunniest countries 1 MWh of average solar generation is still worth more than 60 € (HR, BG, RO, HU, GR) and in IT it is worth more than 90€/MWh. (In 2026 it will likely be more.)
This compares to maybe 40-50 €/MWh of average cost of utility solar
www.bruegel.org/dataset/eu-r...
The full piece, written with my colleagues @keliauskaite.bsky.social and @gzachmann.bsky.social via @bruegel.org is available here:
www.bruegel.org/analysis/dep...
The EU's major vulnerability lies in its general exposure to imported fossil fuels. Reducing this demand must again become a top political priority as in 2022.
A more strategic use of storages - perhaps with a strategic natural gas reserve could also help.
Not because of politics (clearly futile to predict) nor the fact that US Gov does not control exports.
But rather because the flows are all seaborne. Any interruption would see a global re-routing, like today with the closure of Strait of Hormuz.
The volumes are also less significant.
2/4
🆕 Dependence on fossil fuels, not on the United States, is Europe’s worry
We argue that the EU's energy import dependence on the US is not comparable to the historic Russian situation.
A scenario in which the US uses this trade to extract political concessions from the EU is far-fetched.
1/4
Data are collected by the European Heat Pump Association, and made available on the European Clean Tech Tracker here:
european-clean-tech-tracker.bruegel.org/technology/h...
European heat pump sales are up 11% in 2025. Helping this growth to continue must be a crucial part of government response to the incoming energy crisis.
Eurostat data show how European governments cut taxes on electricity by about half in 2022 as prices spiked.
They have since been steadily reintroduced.
Cutting electricity taxes is again on the table in response to latest price rises & to encourage households to move away from fossil fuels.
So we are back to discussing (indirect) subsidies for imported gas - hoping the EU consumer wins. In reality everyone - except the LNG-exporters - loses:
Subsidiarity and proportionality? Both doubtful if the regulation *forces* member states to prefer European producers in tenders.
Battery manufacturing data by country are available here european-clean-tech-tracker.bruegel.org/s/v_tPgw and we plan to launch an interactive map view next week.
🇫🇷 The making of a French battery belt in the Hauts-de-France region
Taiwanese firm ProLogium has just broken ground on a €5.2 billion solid-state battery manufacturing facility in Dunkirk
Two European companies, Verkor and ACC, operate €1 bn and €850 mln facilities nearby with plans to expand
Six years of negotiations and within six weeks of implementation calls are out to dismantle CBAM, namely by removing fertilisers.
Agree with my colleagues that the Commission must resist this.
www.bruegel.org/first-glance...
nice graph!
Data available at :
european-clean-tech-tracker.bruegel.org/overview/dep...
🇮🇹 Last week, the Italian government announced their intent to reimburse the carbon cost paid by gas-fired power plants.
The motivation is clear - Italy has the largest gas share in power production across Europe.
The risk is that this prolongs that dependence and reduces renewables investment.
European gas demand has grown steadily throughout this winter, main reason being lower prices increasing the attractiveness of burning gas for power.
All investments data available at european-clean-tech-tracker.bruegel.org/s/HJsVuQ
European leaders are discussing how to encourage more investments into clean technology manufacturing facilities; and the rules that should be applied when such investments come from abroad.
🇭🇺 🇪🇸 Hungary and Spain today attract by far the most investment and have much at stake
At the European map view you can see this variable and many others across countries
@bruegel.org
european-clean-tech-tracker.bruegel.org/geography/ov...
One million Europeans are employed in clean tech value chains. Including batteries, bioenergy, geothermal, hydro, heat pumps, solar and wind. Jobs are doubled compared with 2010.
The data are not available, but EV and nuclear jobs would push this even higher.
🏭 ‘Made with Europe’ not ‘Made in Europe’ should guide EU industrial policy
💡 Read the First Glance by Ignacio García Bercero,
@bmcwilliams.bsky.social, @niclaspoitiers.bsky.social and @tagliapietra.bsky.social
🔗 www.bruegel.org/first-glance...
#EconSky
🆕 Our argument for "Made with" and not "Made in Europe" to be at the centre of a new European clean industrial policy
@tagliapietra.bsky.social @niclaspoitiers.bsky.social @bruegel.org
www.bruegel.org/first-glance...
🚨No 2025 heat pump rebound in France.
Very similar market to 2024. 🟰
After dropping 40% in 2024, sales of air-to-water heat pumps stayed roughly flat. The 2025 rebound seen in other countries, such as Germany, did not happen in Europe's (still?) leading heat pump market.
If you wonder how US & global trade responds to Trump's tariffs ... my colleagues @zsoltdarvas.bsky.social and Marie-Sophie Lappe have the dataset for you @bruegel.org
Among many figures, I find striking that advanced economy trade as % of GDP is retreating back to COVID-19 levels
Looks like German manufacturing has turned the corner.
www.destatis.de/EN/Press/202...
European natural gas demand bounced back slightly in December 2025. Low prices and a drop in wind led to more gas burned for power. Slight growth in industrial demand too.
www.bruegel.org/dataset/euro...
a few markets were 'spike-ish', but yes fair point not really a spike at EU aggregate - nonetheless, Jan numbers will be revealing
Link to the interactive dataset here:
european-clean-tech-tracker.bruegel.org/s/U6FJNA
