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| Updated | August 27, 2025 |
European Commission Vice-President for the Clean, Just and Competitive Transition Teresa Ribera warned that “political cowardice” is stalling Europe’s decarbonization push. In a July 2 interview with The Guardian, Ribera criticized policymakers for acknowledging the climate emergency while balking at costly measures that risk electoral backlash. “You can’t tell people that climate change is the great existential problem of our generation, and then say, “I’m sorry, we’re not going to do anything,” she said.
The hesitation signals a tougher backdrop for investment and demand. InfoLink focuses on tracking real supply and demand trends in solar and storage, pairing import and installation data with policy signals to highlight where uncertainty is creating market risk as well as opportunity.
Solar Demand Weakens Despite Record Share in Power Mix
Europe is heading for its first decline in solar installations in nearly a decade. SolarPower Europe projects new capacity additions to fall 1.4% in 2025 to 64.2 GW, down from 65.1 GW in 2024. Customs data compiled by InfoLink show Chinese module exports to Europe at 50.5 GW in the first half, a 7% drop from 54.2 GW a year earlier. First-quarter shipments totaled 21.5 GW, down 9% from 23.7 GW in the same period of 2024.
Even as installations slow, solar reached a symbolic milestone in June, supplying 22.1% of EU power for the first time—making it the bloc’s largest single power source. Some markets remain standouts. InfoLink data show the Netherlands consistently ranks among the top two destinations for Chinese module exports. On policy, Spain’s energy transition ministry announced a €480 million “Clean Tech Manufacturing Program” in July to support local solar manufacturing as part of a push to bolster energy security and industrial autonomy.
Source: InfoLink Supply and Demand Database
Heat Waves Test Grids, Highlighting Storage’s Value
Europe’s record summer heat is exposing structural gaps in grid flexibility. Temperatures surged to 46°C in parts of Spain, while Northern Europe faced rare heat waves. Higher cooling demand, rising power prices and reduced hydro and thermal output pushed grids to sustained high load. Despite Europe’s role as a pioneer in renewable and grid investment, the frequency of extreme weather underscores the need for flexible resources.
Ribera noted that political divisions are compounding the challenge. In Spain, right-wing parties have tried to roll back climate laws, while Hungary’s government dismissed EU climate plans as “utopian.” Such disputes stall policy implementation and increase uncertainty. For storage markets, that translates into a persistent paradox: demand is rising, but deployment lags. According to InfoLink’s Global Energy Storage Supply Chain Database, Europe added 19.1 GWh in 2024 and is on track for 27 GWh in 2025. Large-scale and commercial systems are aligned with global growth trends, while the residential market has yet to recover.
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Source: InfoLink Database
Supply Chain Reliance Remains a Long-Term Risk
Alongside deployment, supply chain resilience is a strategic vulnerability. The European Commission’s Raw Material Information System, Europe will remain highly dependent on China in the short to medium term for critical battery materials, such as graphite and nickel. Policy think tank Transport & Environment argues that, with sustained investment, Europe could end its reliance on Chinese lithium-ion cells by 2027, with domestic and regional supply meeting all EV and storage demand. It also expects cathode production to reach 66% localization and lithium refining to hit 50% self-sufficiency by 2030.
Until then, Europe remains exposed to cost swings and trade risks. Monitoring import flows and supply chain shifts will be essential for gauging how fast solar and storage can scale. InfoLink tracks module and battery imports, installation rollouts and policy execution to provide industry participants with grounded insights into risks and opportunities across the solar and storage value chains.
