Renewable energies
Renewable energy plays a crucial role in the EU’s energy and climate policy. The Renewable Energy Directive sets targets for renewable energy to supply a total of 32 percent of the EU’s energy needs by 2030. It is one of the EU’s central goals on the way to climate neutrality in 2050. Renewable energy in Europe therefore plays an important role in energy policy. In the future, electricity is to come increasingly from solar, wind and hydropower.
What role do renewable energies play in the EU energy policy and energy transition?
Renewable energies and the energy turnaround play a decisive role in EU energy policy. The goal of European climate policy is to make Europe climate-neutral by 2050. Because 77 percent of greenhouse gas emissions in Europe come from the energy sector, measures here are particularly important. Renewable energies are sufficiently available in Europe, they are competitively priced and they reduce dependence on energy imports.
At the same time, there is enormous job potential in this sector. In 2021, around 175,000 people worked in the solar industry alone. By 2030, this figure is expected to rise to between 200,000 and 300,000. This is also because the demand for electricity in Europe will grow by around 28 percent by 2050. This is mainly due to population growth, the switch to electric cars and the increasing number of electrical appliances and applications in the home. At the same time, the amount of electricity generated by coal-fired power plants will fall by 95 percent over the same period. Accordingly, the expansion of renewable energies is important for European energy policy.
What is the source of renewable energy in the EU?
Renewable energies in Europe come mainly from five energy sources. Wind power (14.4 percent share of net electricity generation in 2021), solar (5 percent), hydropower (12.2 percent), biomass (3.2 percent) and geothermal (0.2 percent). Wind power has the greatest potential. In 2030, 25 to 30 percent of gross electricity consumption is expected to come from this energy source. Wind power is the cheapest renewable energy and even undercuts fossil-fuel power plants in terms of price. Solar power plays a dual role. While photovoltaic systems supply electricity, solar collectors produce heat.
Biomass can also be used to generate both electricity and heat. Biogas, which is produced by biological decomposition, can also be transported via the existing gas network. Biomass power plants can thus help balance out fluctuations in the supply of renewable electricity. The same applies to hydropower plants. On the one hand, they allow energy to be stored and reduce the cost of grid expansion. Smaller hydropower plants can in fact be set up in a decentralized manner at many locations. Geothermal energy is primarily used to heat or cool buildings, technical plants and infrastructure facilities.
What laws or legislation exist in the EU on renewable energy?
The most important piece of legislation in Europe regarding renewable energy is the Renewable Energy Directive (2009/28/EC). It dates back to 2009 and is considered the foundation of European climate and energy policy. However, the EU extensively revised this directive and issued the Renewable Energies Directive II (RED II) in 2018. The key difference is that the new directive requires the EU to set a mandatory overall target. By 2030, 32 percent of electricity must come from renewable sources.
The Renewable Energy Directive is an overall regulation for all renewable energy sectors. That is, electricity, heating/cooling and transport. The EU has thus abolished existing regulations on specific sectors. For example, the Electricity Directive (2001/77/EC) and the Biofuels Directive (2003/30/EC). In order to achieve the overall target, individual targets are prescribed for the national states, based on their respective status in renewable energies.
Who are the leaders and laggards in renewable energy in the EU?
Sweden is the absolute leader in Europe when it comes to renewable energy. Already in 2019, 56.4 percent of the country’s energy came primarily from hydro and wind power. Finland follows right behind with 43.1 percent and Latvia with 41 percent. That’s three of 14 countries that were able to meet their 2020 targets. With a 17.4 percent share of renewable energy in the electricity mix, Germany failed to meet its own 2020 target (18 percent).
Bringing up the rear in terms of renewable energies is Luxembourg. Only 7.1 percent of gross final energy consumption came from renewable sources in 2019. The country is extremely dependent on energy imports and fossil fuels. The government is therefore planning an expansion offensive for the coming years. Biomass and solar in particular will be promoted. Malta (8.5 percent) and the Netherlands (8.8 percent) also have a very low share of renewable energies in their electricity mix.
How have renewable energy investments developed in the EU?
Investments in renewable energies are currently increasing massively in Europe. By 2030, the European energy industry plans to invest at least 650 billion euros in this technology. Depending on subsidies from the EU, this could even reach one trillion euros, according to estimates by management consultants Kearney. There are two reasons for this. First, the general conditions are right. The technologies are becoming cheaper and investments are paying off more quickly. With the Green Deal, the EU has also committed itself to ambitious targets.
The second reason is that energy companies have neglected to invest in renewable energies in recent years. In 2019, for example, they invested just $58.4 billion in renewable energy. As recently as 2011, the figure was $132 billion. Europe makes about 36 percent of all global investments in renewable energy.
Renewable energy: All news on the topic
Renewable energy plays a central role in meeting Europe’s climate goals. Without wind power, solar power and hydropower, a 55 percent reduction in greenhouse gases by 2030 is inconceivable. New regulations and guidelines, as well as investments and technologies, affect all EU member states. Accordingly, the news on this topic are relevant. These are provided by the Table Media editorial team.