Electricity production: coal hits historic lows (cross-border guide)

Context

In a nutshell

• Coal covers only 9.2% of EU electricity production in 2025.
• In 1990 coal accounted for more than a third of the total.
• Hard coal fell to 3.7% and lignite to 5.5%.
• Since 2024, the 10% threshold has been definitively exceeded downwards.

Key facts

• What: Gross energy production from coal and lignite
• When: Data for 2025
• Where: European Union
• Who: Eurostat
• Percentage 2025: 9.2% overall
• Percentage 1990: More than a third of the total

In 2025, electricity production in the European Union underwent a structural change, with coal hitting a new all-time low. According to Eurostat data, the share of hard coal stood at 3.7% of total gross production, corresponding to 105,601 gigawatt hours (GWh). At the same time, lignite covered 5.5% of production, equal to 154,186 GWh. The combination of these two sources brought the overall share to 9.2%. This result continues a consolidated trend, given that already in 2024 coal had fallen for the first time below the critical threshold of 10% of total European electricity production.

Analysis of historical data

Comparison with past decades highlights a radical transformation of the energy mix. In 1990, hard coal and lignite together accounted for more than a third of total electricity production, with individual shares of 19.8% and 15.3% respectively. With the arrival of the year

Operational details

The European energy transition directly affects the Swiss energy market, which is closely connected to that of the EU. Although Switzerland has an energy mix characterized by a strong hydroelectric and nuclear component, import and export price dynamics are influenced by the sources used by neighboring countries. The drastic reduction of coal, down to 3.7% for hard coal and 5.5% for lignite, reflects pressure towards decarbonization that indirectly impacts the cost of living in Switzerland. When European electricity supply changes, tariff dynamics can also oscillate, reflecting on the final bill of residents and businesses.

Useful tools to protect your net income

To reduce FX leakage, compare CHF-EUR exchange options and banks for cross-border workers.

Key points

For residents of Switzerland, you need to understand how changes in the energy market affect their personal finances. Although the decline in coal to 9.2% is a macroeconomic figure, it indirectly influences the cost of services and consumption. It is advisable to always keep your financial planning under control, especially in a context of energy transition. To better manage disposable income and cope with any increases in household management costs, tax and wage planning tools remain essential. Proper management of taxes and contributions, such as those related to direct federal tax, allows you to optimize your personal resources.

Practical financial management tools

For those who want to assess the impact of fixed costs and their remuneration situation, the use of digital tools is a well-established practice. Regardless of international energy dynamics, proper household budget management is the first step to protecting savings. It is recommended to periodically analyse your professional and contribution situation through the portals dedicated to salary estimates. To deepen your position, you can use the calcolatore stipendio to check the adequacy of your salary and plan future expenses, ensuring greater economic solidity even in phases of high volatility of the energy markets

Source: tio.ch