The European Union (EU) is working to strengthen its energy relationship with the United States, aiming to secure more liquefied natural gas (LNG) to address concerns raised by President Donald Trump. At the same time, the EU is focusing on expanding its renewable energy capacity, aiming for a record year in 2025, according to the EU’s energy commissioner.
In a recent statement, Dan Jørgensen, the EU Energy Commissioner, confirmed that the bloc expects to install a record 89 gigawatts (GW) of renewable energy capacity in 2025. This includes significant additions in both wind and solar power. However, Jørgensen clarified that this green energy push would not interfere with potential agreements to purchase additional US LNG as part of efforts to respond to Trump’s trade tariffs.
Trump had previously suggested that the EU buy up to $350 billion worth of US energy products to help reduce the US trade deficit. The US is already the EU’s largest supplier of LNG, providing 45 percent of its imports in 2024, valued at around $13 billion.
“We see potential to buy more LNG from the US, but it must align with our green energy transition,” Jørgensen said. He noted that while Brussels cannot mandate contracts, it can encourage companies to sign deals under favorable conditions.
Despite these efforts, Jørgensen emphasized that the EU’s green transition remains a priority. The EU is determined to reduce its dependence on Russian fossil fuels and bring down high energy costs. He also highlighted that since 2022, the EU has spent more on importing Russian fossil fuels than it has provided in aid to Ukraine.
Renewable Energy Growth Despite Challenges
The European Commission expects 2025 to be a landmark year for renewable energy installations in the EU. This growth includes the addition of 70 GW of solar power and 19 GW of wind power. However, the renewable sector faces significant hurdles, including long delays in obtaining permits and issues with connecting to the grid.
Jørgensen emphasized that increasing renewable energy capacity is essential for the EU’s energy future. “We cannot continue with high energy prices, especially as we look toward future global competition,” he said. The shift to renewable energy is seen as a vital strategy to reduce dependency on imports and stabilize energy prices across Europe.
Jørgensen’s remarks were delivered ahead of an industry conference in Copenhagen, where he is expected to announce these ambitious renewable energy figures. The goal is to encourage offshore wind investors to continue their projects despite setbacks from US energy policies, which have caused disruption in global supply chains.
Concerns from the Wind Industry
Rasmus Errboe, CEO of Ørsted, the world’s largest offshore wind developer, warned that Europe’s wind industry is at risk of a “downward spiral” due to rising costs and supply chain disruptions, exacerbated by Trump’s tariffs on aluminum and steel.
Trade body WindEurope noted that new wind power capacity in Europe is expected to grow by 34 percent in 2025, but progress in 2024 had been slower than anticipated. Ongoing issues with permits and grid connection bottlenecks have delayed progress, a challenge also faced by the solar sector, which saw a dramatic slowdown in capacity growth from 53 percent in 2023 to just 4 percent in 2024.
Impact on US-EU Trade Relations
The US’s tariffs on European imports have already started to impact European companies, including Ørsted, which relies heavily on imported components from Europe for its US-based wind projects. The EU solar sector, while not a major exporter to the US, is also affected by these tariffs, particularly those on key components exported to the US market.
Jørgensen acknowledged that while the EU’s solar exports to the US are relatively small, the economic fallout from the tariffs could have a significant impact on European companies involved in the sector.
Despite the challenges posed by the trade tensions, Jørgensen suggested that the EU could still benefit from the ongoing global economic instability. He argued that as companies seek safe and stable markets, Europe’s predictable regulatory environment makes it an attractive destination for investment.
EU’s Green Transition Remains Unchanged
Jørgensen reiterated that the EU will not backtrack on its green energy agenda. However, he stressed that the bloc aims to simplify the rules governing renewable energy. Currently, the average wait time for permits is between five and seven years, but the EU is working to reduce this to just six months. Jørgensen also highlighted that nature protection directives would need to be addressed to expedite the process.
The EU’s approach to simplifying renewable energy regulations, coupled with increased efforts to secure LNG imports from the US, demonstrates its commitment to both energy diversification and its green energy transition. However, these efforts are set against the backdrop of a complicated trade relationship with the US and ongoing challenges in the renewable energy sector.
In summary, while the EU navigates complex trade negotiations with the US, it remains focused on its renewable energy goals. With 2025 expected to be a milestone year for renewable capacity, the EU’s strategy to reduce dependency on fossil fuels while addressing trade tensions will shape its energy future for years to come.
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