Transforming the energy mix: Insights from 20 nations

DOI: https://doi.org/10.58248/RR86

Introduction

Parliament-associated research bodies from across 20 major economies (Table 1), including the Parliamentary Office of Science and Technology (POST) for the UK, conducted a high-level analysis of the energy transition in their countries. The analysis of the 2025 report identified several common themes and challenges.

Table 1: Country names and their corresponding two-letter code

Carbon reduction targets

The EU aims to reach net zero by 2050, and the “Fit for 55” package aims to support 55% reduction in emissions by 2030. Japan, the UK and Switzerland are aiming for net zero emissions by 2050, while Norway aims for a 90–95% reduction in its emissions by that year. The US had aimed to reach net zero by 2050 under the Biden administration, but its withdrawal from the Paris Agreement in 2025 has cast uncertainty over this.

Between 2000 and 2022 almost all countries reduced their energy-related CO₂ emissions, with the US and Luxembourg achieving the largest reductions.

Energy demand

Since 2000, there has been a decrease in energy demand because of increased energy efficiency and slower economic growth. Some countries report a decline in electricity demand due to a decline in manufacturing, the covid-19 pandemic, and rising energy costs. Others suggest increased electricity demand due to the electrification of heating and transport through the replacement of gas boilers with heat pumps and the rollout of electric vehicles.

There is significant energy demand from the residential sector, depending on the method and efficiency of heating. Industrial energy demand reflects each country’s economic structure and has generally declined with efficiency gains and slower growth.

Figure 1: Energy mix of select countries in 2024, with data taken from the International Energy Agency.

Coal, oil and natural gas.

Figure 1 above shows the International Energy Agency statistics on total energy supply for each major economy.

Fossil fuels comprise the greatest proportion of the energy mix in most countries. The EU energy mix reflects the continuing reliance on fossil fuels across Europe; petroleum demand was 37%, and natural gas demand 20%.  Notable exceptions are France, Switzerland and Sweden where nuclear power is more considerable, and Norway, which produces ~50% of its energy through hydropower.

Broadly, coal demand has decreased, The Netherlands, UK and Portugal recently phased out coal for electricity generation entirely, with remaining coal demand coming from industry. Germany and Poland get a lot of their energy from coal but they have estimated they will phase out coal in the next ten years, though this has been met with opposition from coal miners in Poland.

Oil imports remain high in many countries, with Europe importing 75% of its crude oil in 2023, primarily for use in transport. However, there is a widespread move towards electrification of road transport, with an increase in sales of electric vehicles (EVs). Norway had the highest share of EVs, accounting for 95% of new vehicles sold in 2025. However, the cost and feasibility of the EV rollout has prompted discussions on whether bans on petrol and diesel vehicles should be delayed.

While gas demand decreased for electricity generation, some countries still rely on it for heating and industry. Norway is Europe’s largest gas supplier and their report suggested that production will remain significant into the 2030s. However, The Netherlands noted the closure of the Groningen gas reserve after increased seismic activity from gas extraction led to political opposition.

Countries with low gas demand often have a large amount of district heating, or low electricity prices which supports electrification. While there is general support for heat pumps in decarbonising domestic heating, there is some opposition focusing on upfront and operating costs.

There is some discussion of carbon capture and storage, particularly for industrial areas in Japan, US and Germany, although there were varying opinions on its cost, feasibility and safety.

Hydrogen

Hydrogen usage varies by country, including long duration energy storage, heat for steel and cement manufacture and chemical feedstock in fertiliser or ammonia production. Some countries have targets for hydrogen production, but cancellations in production and lower demand forecasts raised concerns that these targets will not be met. Germany has reported that only 1% of their 2030 10 GW target has been realised so far.

Nuclear

Nuclear power can be controversial: some groups favour more domestic nuclear energy to support energy security, while others cite concerns around public opinion, safety, waste and economics. While many countries had plans to phase out or stall nuclear developments, opinion has shifted in some of them towards maintaining existing plants, which requires managing ageing reactors. Some countries specifically mention small modular reactors as a potential next-generation technology, Poland, Sweden and the UK have announced new projects, though most countries are more cautious.

Biofuels, biomass and waste

There are differences in the end use of biomass, biofuels and waste, including electricity generation, heating, industry and long-distance transport.

Demark has the highest use of biofuels and waste, and it has converted its coal power plants to run on biofuel. Sweden also has high biofuel use, particularly for transport, which may contribute to the country’s low oil demand.

Figure 2: The electricity generation mix of select countries in 2024, with data taken from the International Energy Agency.

Renewables

The EU energy mix contains 19.5% renewables, and the amount of renewable generation is increasing across all major economies. Renewable technology choice is dependent on geography and weather, this is particularly evident with countries with a large amount of hydropower.

Growth in renewables can be stalled by political or public opposition. For example, new onshore wind projects in Switzerland, Norway, Austria and Germany have opposition over deforestation, landscape protection and the impacts on wildlife and residents. Negative public perceptions of wind power in Switzerland have led to a focus on solar energy generation, which has higher intermittency than wind and requires more short-term storage.

Public opinion is more favourable to domestic rooftop solar due to the direct benefits for households and businesses, but large-scale solar installations have led to concerns over land use.

Most countries see the importance of public engagement in the energy transition and report a rise in citizen-led energy communities, government-led community benefit schemes for new infrastructure, and local ownership of renewable generation. In Lithuania, revenue from renewables is redistributed among community organisations. In Sweden, tax paid by power companies goes to local councils to encourage them to accept planning applications for new developments.

Energy prices

Europe faces higher energy prices than other regions, partly because of the marginal pricing model. The energy crisis prompted widespread government support for household bills, and discussion around the affordability, fairness and pace of a just energy transition.

Public support for energy transition remains high but has declined due to increasing energy costs, slow economic growth and energy security concerns. In response to high costs, there are discussions over the subsidies provided for renewables. Some countries also discuss removing subsidies for fossil fuels. The Netherlands recently removed an additional carbon tax to help support energy intensive industries.

Networks, storage and flexibility and interconnection

The increase in intermittent renewable generation creates challenges relating to the electricity grid, electricity storage, network flexibility and interconnection.

Most countries are planning grid capacity upgrades to support the increase in renewable generation, particularly smaller wind and solar generators connected to local distribution grids. Europe’s ageing distribution networks are under rising pressure, with 40% of the EU grid now over 40 years old.

Energy storage is widely discussed as a challenging but crucial aspect of the energy transition with a range of storage technologies such as hydropower, hydrogen and other fuels, and batteries discussed in the report. Energy storage can compensate for the variable output of energy sources over a short period, or longer variability, caused by seasons, weather events, generator outages, and renewable intermittency. Countries without feasible hydropower target a mix between hydrogen and batteries, while Denmark considers its domestic heat networks to be potential storage.

There is widespread rollout of smart meters, but Germany lags behind with less than 10% penetration. Most countries have flexible energy tariffs to help shift demand and cut costs; in Norway, 90% of households and small businesses use half-hourly tariffs. The EU has reported that regulations can make it difficult to offer flexible tariffs to industries. Spain allows local power sharing where excess domestic solar generation is shared with nearby consumers.

The EU has a 15% electricity interconnection target by 2030 to improve flexibility and security, with many countries planning new cross-border interconnectors. Portugal and Spain are the most at-risk EU countries for blackouts due to low interconnection and high import dependency. Norway has postponed interconnector projects and cancelled a planned link to the UK after energy costs turned the issue into a political debate. Belgium and Denmark are developing offshore energy hubs to link offshore wind assets more effectively.

Supply chains

Demand for critical minerals, components in many renewable technologies, is rising with the energy transition. The US imports 70% of critical minerals from China, and there are concerns around supply chains for solar, wind and batteries. Japan’s global share of EV batteries has declined significantly since 2015.

The EU has set a target of domestically extracting 10% of its annual consumption of strategic materials by 2030. Portugal reports that proposals to mine lithium reserves were met with environmental opposition. There are also concerns about critical infrastructure security, particularly around the Baltic Sea.

Figures contributed by Paul Bolton, House of Commons Library, 31/10/2025