Europe power markets 2021 outlook to 2050

Hot on the heels of the relaxation of Covid-19 restrictions, the EU released its long-awaited ‘Fit for 55’ package in July to set the continent on course to achieve net zero emissions by 2050. This package of proposals represents an interconnected suite of far-reaching legislative changes, including higher renewable energy targets, a strengthening and expansion of emission trading, and support for corporate PPAs, among others. Taking centre-stage is the new 55%-by-2030 emissions reduction goal, and the implications for the power sector are stark; almost two-thirds of power supply may need to be met by renewables to deliver this target, up from just 36% in 2019. This report provides a summary of our long-term regional outlook for European power to 2050. It is a product of Wood Mackenzie’s H1 2021 integrated modelling process, incorporating the latest analysis from our commodity teams as well as substantial updates to our outlooks for power markets and related technologies.