The European Union's Power sector and the end-use sector are responsible for nearly 75% of the EU's Greenhouse Gas emissions. It is the need of the hour to decarbonise the EU's energy system to achieve climate neutrality by the mid-century. The European Green deal lays down very ambitious targets of 55% emission reduction in 2030 and 100% emission reduction in 2050 from 1990 levels. Increased penetration of renewable energy technologies in the Power sector and simultaneous electrification of the end-use sector to meet the increased supply of electricity from renewable energy will accelerate the decarbonisation process. Therefore, this thesis aims to analyse the impact of the European green deal targets in transforming the power sector into a carbon-neutral power sector.