The European Union has officially crossed a historic threshold in its energy transformation: coal-based electricity generation dropped to 9.2% of total production in 2025, marking the lowest level since records began. Yet this milestone arrives with an uncomfortable truth for Italy—a country that has largely phased out coal but must now confront a singular, stubborn remnant: the Sulcis plant in Sardinia, whose closure has been postponed until 2028, complicating national compliance with the bloc's accelerating decarbonization agenda.
The story is one of dramatic reversal. Hard coal accounted for just 3.7% (105,601 gigawatt-hours) of EU electricity in 2025, while lignite contributed 5.5% (154,186 GWh). Combined, these figures represent a retreat from 1990, when coal supplied more than one-third of the bloc's electricity. By 2000, that share had fallen to 30.4%, and despite brief rebounds during 2011–2012 and 2021–2022—driven by gas-price shocks and geopolitical tensions—the downward trajectory resumed. Data released by Eurostat confirm that solar power overtook coal in 2024, joining nuclear, natural gas, hydro, and wind as more significant sources. Coal and lignite now rank seventh and sixth, respectively, in the EU generation hierarchy—a reversal from their second and third-place positions 35 years ago.
Investment priorities are shifting across the bloc. EU renewable capacity now outpaces fossil fuels, reshaping infrastructure spending and subsidies in every member state. As coal exits, reliance on solar, wind, and nuclear intensifies—affecting grid stability and import dynamics for natural gas. The timeline pressure is real: Italy's last operating coal plant faces closure delays until 2028, and countries across Europe are racing to meet the 55% emissions-reduction target by 2030 and achieve climate neutrality by 2050.
The geography of coal dependence reveals stark contrasts. Poland remains the bloc's coal stronghold, with an official phase-out date set for 2049, though market forces and EU carbon pricing may accelerate closures. Germany experienced a temporary uptick in coal use during 2026, driven by Middle East tensions that disrupted natural-gas markets. Greece brought forward its coal exit to 2025, and Finland operates two biomass-coal hybrid plants with coal comprising up to 30% of fuel input. Conversely, Belgium eliminated coal-fired generation in 2016, Austria shuttered its last coal plant in 2020, Sweden closed its final facility in 2020, and Portugal ended coal use in 2021. Ireland retired its last coal generator in 2025, becoming the 15th European nation to exit the fuel entirely.
The ascent of solar from niche technology to leading renewable source reflects both policy design and market dynamics. In 1990, solid fossil fuels supplied 41.2% of the EU's primary energy. Three and a half decades later, solar photovoltaics generated 13% of EU electricity in 2025, surpassing both coal and hydropower. Total installed solar capacity reached approximately 406 GW, exceeding the 380 GW target set by the bloc's 2022 solar strategy. The drivers are compelling: solar module prices have fallen by more than 80% since 2010, making photovoltaics the most competitive electricity source in many regions. The EU Emissions Trading System (ETS) has rendered coal progressively uneconomical, with carbon permit prices often exceeding €80 per tonne. The RED III framework, adopted in 2023 as part of the "Fit for 55" package, mandates that 42.5% of final energy consumption come from renewables by 2030, with an aspirational goal of 45%. The REPowerEU initiative, launched in response to the 2022 energy crisis, accelerated renewable deployment to reduce dependence on imported fossil fuels. By the second quarter of 2025, renewables supplied 52.7% of EU electricity generation, and in June of that year, solar became the single largest source of bloc-wide power for the first time.
For Italian households and enterprises, the implications are multifaceted. Renewable overcapacity can depress wholesale prices during sunny or windy hours, potentially trimming bills. Yet grid-balancing costs and natural-gas import dependence may sustain retail volatility. National and EU funds continue to prioritize solar and wind installations, battery storage, and grid upgrades—creating opportunities in construction, manufacturing, and technology sectors. Italy's position as a net energy importer magnifies exposure to global gas markets. While domestic solar installations reduce fossil-fuel purchases and save billions of euros annually across the EU, sudden supply disruptions—as seen in 2022 and 2026—can trigger price spikes and force short-term reliance on remaining dispatchable generation.
The Sardinian delay underscores a recurrent tension at the heart of Europe's energy transition: balancing climate commitments with local economic realities, particularly in regions where coal mining or generation has provided livelihoods for decades. The Coal Regions in Transition (CRiT) initiative, launched in 2017, channels EU funds toward retraining workers, diversifying regional economies, and upgrading infrastructure in communities historically dependent on mining and coal-fired generation. For Sardinia, this framework will be critical as Sulcis winds down operations.
The 9.2% coal share in 2025 electricity production represents more than a statistical milestone; it is evidence that the EU's multi-decade policy architecture—binding targets, carbon pricing, renewable subsidies, and regional support—can drive systemic transformation. For Italy, the narrative is one of near-completion: coal's role has shrunk to a single plant in Sardinia, and the country's renewable capacity continues to expand. Yet the final stretch demands vigilance. Delays in Sardinia, grid-integration bottlenecks, and external energy shocks all threaten to slow momentum. As the bloc races toward its 2030 and 2050 goals, the lesson is clear: phasing out coal is achievable, but sustaining the transition requires constant attention to infrastructure, investment, and the livelihoods of those communities left behind by the old energy order.
