An overview of photovoltaic (PV) power generation activities in Europe is presented, drawing on recent experiences from the European Commission's THERMIE PV demonstration programme, and including some European PV market data and a summary of ways that photovoltaics contributes to the policy objectives of the European Union (EU). The importance of further cost reductions is emphasized with reference to the THERMIE objective of 10±15% reductions in overall projects costs per Wp over the next 4 years. Noting that PV power generation in Europe is moving from being mainly an R&D activity to being one that needs promotion in the market, the market development process is explored, and it is emphasized that project and market organization orgware' issues are as important as technical hardware and software issues in PV demonstrations and promotional activities. Finally, some European success stories' are presented and priorities for future PV demonstrations are proposed. It is concluded that one of the most promising areas for PV power generation in Europe is in distributed grid-connected PV power generation, and that greater emphasis should be given to `orgware' issues such as building con®dence in PV technologies, links with utilities, meeting the needs of the users (citizens) and reducing costs by exploiting economies of scale in project implementation.