In a landmark shift, solar power accounted for 11% of the European Union’s total energy mix in 2024, surpassing coal for the first time. This achievement underscores the EU’s leadership in renewable energy and offers valuable lessons for Vietnam’s solar development.

Solar power transition in Europe

The EU continues to set the global benchmark for renewable energy adoption. According to energy consultancy Ember, solar energy contributed 11% of the EU’s electricity generation in 2024, up from 9.3% in the previous year. This milestone marks a decline in coal’s share, which has now fallen below 10%.

Data from Carboncredits, a platform specializing in carbon credit markets, reveals that the EU installed a record 66 GW of solar capacity in 2024, bringing its cumulative total to 338 GW. This positions the region close to its 400 GW target for 2025 under the REPowerEU strategy—an initiative aimed at ending the EU’s reliance on Russian fossil fuels by 2030. At the current growth rate, the EU is well on track to achieve its ambitious goal of 750 GW by 2030. Notably, the number of EU member states generating over 10% of their electricity from solar has risen to 16, up from 13 in 2013, illustrating the widespread expansion of solar energy.

Innovative solar applications are taking shape across Europe, including balcony-mounted solar panels in Germany and agrivoltaic (agri-PV) systems that combine energy production with agriculture. While rooftop solar has faced challenges, utility-scale solar has emerged as the dominant segment, according to industry association SolarPower Europe.

Challenges of the transition process

Despite rapid advancements, the EU’s solar transition is not without obstacles. The expansion of solar energy is outpacing infrastructure improvements, with smart meters—essential for real-time electricity monitoring—remaining underutilized in many countries, with adoption rates below 30% in 10 EU member states.

Additionally, battery storage infrastructure is unevenly distributed, with Germany and Italy alone accounting for 70% of the EU’s total installed capacity.

Another challenge stems from market oversupply, which caused wholesale solar panel prices to drop by 35% between January and November 2024, following a 50% decline the previous year. While lower costs have made solar more accessible, they have also slowed investment, and regulatory complexities continue to pose challenges for project implementation.

Solution and strategies

To overcome these challenges, the EU is prioritizing clean flexibility solutions, which include battery storage, grid modernization, and smart electrification – key pillars of the renewable energy transition. Battery storage plays a crucial role in balancing electricity supply and demand, storing surplus power when solar generation is high and distributing it when consumption peaks. The integration of solar panels with energy storage systems, known as solar-plus-storage, is rapidly becoming the industry standard. This approach allows producers to store excess electricity generated in the afternoon and sell it at higher prices in the evening, enhancing the financial viability of solar investments.

Expanding cross-border electricity interconnections is another vital solution, enabling countries to share surplus solar power, reduce dependency on fossil fuels, and enhance overall grid stability. Additionally, regulatory reforms are underway to streamline administrative processes and attract further investment. According to Reuters, the European Commission is considering simplifying renewable energy regulations to facilitate business expansion and project implementation.

For consumers, midday electricity prices frequently drop to zero or even turn negative. Households and businesses can capitalize on these low-cost periods through smart electrification technologies, optimizing energy consumption and significantly reducing costs.

Potential and lessons for Viet Nam

Vietnam has significant potential for solar energy development, benefiting from a tropical climate with abundant solar radiation averaging 1,500 kWh/m² annually. The country’s geographical advantages create strong opportunities for both urban and rural solar power deployment. Drawing from the EU’s experience, Vietnam can accelerate its solar transition by focusing on key areas such as adaptive policies, grid modernization, economic advantages, innovation, and public engagement.

Adaptive policies and regulatory support are crucial for fostering solar energy growth. The EU continuously refines its policies to balance investment incentives with consumer protection, a strategy that Vietnam can emulate by implementing smart regulations to reduce bureaucratic hurdles and encourage private sector involvement. Additionally, modernizing the grid will be essential for a successful energy transition. Investments in smart grids, regional connectivity, battery storage expansion, and smart metering systems will improve efficiency and reliability.

Beyond sustainability, solar energy presents substantial economic opportunities. The EU has demonstrated that solar power can lower electricity costs, enhance business competitiveness, and ease financial burdens on governments. A market-driven electricity pricing system in Vietnam would encourage smarter consumption and investment. Encouraging innovation and diverse applications, such as agri-PV and balcony-mounted solar panels, will further expand Vietnam’s solar market, particularly in rural and urban areas. The government should introduce pilot programs, technical assistance, and financial incentives to scale up these innovations.

Public awareness and capacity building are equally important. Raising awareness about the benefits of solar power through education campaigns, technical training programs, and government-industry collaborations will be critical in fostering widespread adoption and developing a skilled workforce.

The EU’s experience illustrates how solar energy can play a transformative role in replacing fossil fuels with clean, cost-effective, and sustainable alternatives. With Vietnam’s ongoing progress and evolving policy framework, the country is well-positioned to accelerate its solar energy deployment and achieve a significant breakthrough in its renewable energy transition.

Source: Công thương

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