For the third year running the London-based think tank Sandbag has teamed up with Agora Energiewende to assess the current state of the European power market. The 2017 report sheds light on trends in renewable and conventional power generation, power consumption, CO2 emissions, and climate-policy reforms at the national and European levels. While renewables are accounting for an ever larger share of the power mix, the road to decarbonisation has been slow and difficult. A number of key challenges remain, including promoting energy efficiency in private sector, phasing out coal power and integrating the power market at the European level. Nevertheless, progress is clearly being made: the reform of European emissions trading combined with ambitious initiatives at the national level have lent valuable momentum to the transformation of Europe’s power sector.