Abstract
In 2008, Energy Commissioner Günther Oettinger declared that "The energy challenge is one of the greatest tests for us all. Putting our energy system onto a new, more sustainable and secure path may take time but ambitious decisions need to be taken now. To have an efficient, competitive and low-carbon economy we have to Europeanise our energy policy and focus on a few but pressing priorities." Europe has set the example for environment-friendly reforms in many domains. In particular, it is one of the top producers of energy from renewable sources, and continues to introduce directives to limit greenhouse gas emissions despite the relative failure of the Copenhagen summit. By 2020 renewable energy should account for 20% of the EU's final energy consumption (it stood at 9.2% in 2006). Renewable energy is energy which comes from natural resources such as sunlight, wind, and geothermal heat, which are renewable (naturally replenished). Nuclear power is not considered to be a source of renewable energy but a low carbon emission source.
Renewable energy sources (RES) have experienced tremendous growth in recent times.
A European Environment Agency analysis of the 20% target shows that electricity will make up 45% of the EU's renewable energy production, with heating and cooling comprising 43% and transport 12% in 2020. Also, 36.1% of electricity will come from RES in 2020. These calculations from the 19 member states which are part of the National Renewable Energy Action Plans (NREAPs) stress the increasing economic importance of renewable energy in the EU. The fact that the results calculated by the member states contradict the Commission's most ambitious scenario in its latest Energy Trends to 2030 update, which foresees the same figures ten years later, in 2030, also shows how difficult it is to analyze this sector. This difficulty makes it all the more interesting and challenging to study this new but crucial economic sector. Furthermore, the growth of renewable energy production will probably strengthen European unity, creating an additional connection between member states: cooperation mechanisms are being put in place to ensure the delivery of the national targets, re enforcing the "community spirit". Using these mechanisms will be essential for countries with relatively high targets but very limited domestic sources of renewables.
The improvement of inter-state flexibility mechanisms will be essential not only to achieve the targets, but also in significantly reducing the costs of compliance.
In economically challenging times, Europe needs a strong future-oriented industry and the creation of new jobs. Renewable energies enable to secure economic, environmental and social benefits. What is the future for renewable energies both at the national and the European level, in economic terms?
In the first section of the essay, I will present the different types of renewable energy resources available in Europe, comparing their economic advantages. In the second section, I will analyze a few recent and determining EU policies dealing with the promotion of renewable energies, as well as the EU's prediction of their economic impact. Finally, in the last section, we will study how effectively member states have applied these policies, and how the reforms implemented have changed or are expected to change their national economies.
