This thesis investigates the key factors influencing renewable energy consumption across 21 European countries from 2013 to 2022. With rising concerns about climate change, resource depletion, and the transition away from fossil fuels, understanding the various drivers of renewable energy adoption has become essential. The study examines the impact of electricity prices, GDP per capita, foreign direct investment (FDI), urbanization, and gas prices on renewable energy usage. Using panel data analysis, including Pooled Ordinary Least Squares (POLS), Fixed Effects Model (FEM), and Random Effects Model (REM), the research analyzes both the entire sample and subgroups categorized by GDP levels. The findings highlight that urbanization and gas prices are significant determinants of renewable energy adoption, particularly in low- and high-GDP countries, respectively. The results emphasize the need for targeted policies that consider country-specific economic structures and development levels to effectively support the shift toward sustainable energy systems.