Europe is approaching a pivotal moment in the global shift to clean energy, with signs that the climate transition is accelerating—but challenges remain. Elena Roemer, CEO of Green Horizon Capital, says, “Last year, nearly 88% of all new electricity generation worldwide came from renewable sources, such as solar, wind, and hydro. Countries like Norway and Sweden are exceeding climate targets, showing what’s possible when policy aligns with innovation.” Despite these gains, Roemer emphasizes the need for increased investment in climate technology to maintain momentum. Alarmingly, European climate tech funding fell to a five-year low in the first quarter of 2025.
In a recent episode of the sustainability podcast NextGen Energy Leaders, Roemer discussed how Green Horizon Capital is democratizing climate finance, allowing both institutional and individual investors to fund emerging clean-tech companies. She stressed that broad participation is critical to speeding up Europe’s energy transformation.
Europe’s Growing Commitment to Clean Energy
Public engagement in Europe is rising. Citizens are embracing eco-friendly habits, with 66% actively reducing waste and 51% minimizing single-use items, according to the European Environment Agency. Financial commitments are increasing as well: the first half of 2025 saw a 36% rise in battery-electric vehicle (BEV) registrations across Europe compared to the same period in 2024, highlighting the public’s willingness to invest in greener lifestyles.
Countries across the continent are also experimenting with decentralized energy models to stabilize supply and reduce costs.
The Rise of Energy Communities
Energy communities are emerging as powerful tools for local sustainability. In Denmark’s Vesterhavn district, investments in wind turbines, heat pumps, and electric boilers during the 2022 energy crisis resulted in a 52% reduction in heating costs for residents. Similarly, Ireland’s GreenWave Cooperative has leveraged energy savings to fund home renovations and efficiency upgrades, cutting annual energy consumption by over 11 GWh while creating local jobs through contracted renovation work.
Finland is experimenting with advanced energy storage solutions. In the town of Aurinkolaakso, a sand battery stores surplus solar and wind energy, providing enough heating for the small community of 5,200 people for weeks during overcast or windless periods. These projects demonstrate how local initiatives can complement national policies to create resilient, sustainable energy systems.
Modernizing the Grid
Recent events underscore the importance of modernizing energy infrastructure. An April 2025 blackout in the Iberian Peninsula raised alarms about grid stability, though experts attributed the outage to “growing pains” from integrating fluctuating renewable sources rather than a failure of renewable energy itself. Earlier in the month, Spain ran entirely on renewables for nearly 12 hours, revealing how dynamic generation can stress older grid systems.
Marta Silva, a Lisbon-based sustainability analyst, notes that lessons from other regions, such as South Australia’s 2016 blackout, can guide Europe. South Australia now produces 64% of its electricity from renewables without major interruptions, thanks to grid modernization and storage solutions.
Electric Vehicles as “Mobile Batteries”
The surge in electric vehicles (EVs) presents both challenges and opportunities. EVs are often criticized for increasing electricity demand, but emerging technologies are turning them into assets for grid management. During a ride in the all-electric Voltura V9, Roemer and TechTomorrow founder Leo van Dijk discussed its bidirectional charging system, which allows the vehicle to store energy and return it to the home or grid. Fully charged, a single V9 could power a household for about a week.
Research supports the economic potential of this approach. A Fraunhofer Institute study for Transport & Environment indicates that widespread adoption of vehicle-to-grid (V2G) technology could save the EU up to €10.2 billion in grid expansion costs by 2040. Yet regulatory frameworks and charging infrastructure must catch up to fully realize these benefits.
Currently, V2G technology is experimental, but community-driven projects are proving its feasibility. Pilot programs in the Netherlands, Germany, and France are already integrating EV storage into local microgrids, providing valuable lessons for larger-scale deployment.
Lessons for the Future
Europe’s energy transition shows that technical solutions, community engagement, and regulatory clarity can work hand in hand. Yet, funding gaps and cultural hurdles remain. Roemer emphasizes that “investment in clean technology must match public ambition, and Europe has a rare opportunity to combine innovation with social responsibility.”
From energy communities and sand batteries to electric vehicles and microgrids, Europe is building a foundation for a sustainable, resilient, and inclusive energy future. The continent is not just keeping pace with global renewable goals—it’s creating models that could inspire other regions to follow.
As the energy transition accelerates, the lessons are clear: technological innovation, citizen participation, and policy alignment are the keys to tipping the scale toward a cleaner, smarter, and more equitable energy landscape.