In this Market Assessment report, the EU renewable energy industry is described and analysed in terms of statistics, industry structure and corporate developments. Renewable energy is a vital part of the EU's energy, for two main reasons. The principal reason is that renewable energy provides a sustainable supply of energy independent of imported energy.
This is a key point, as the EU is forecast to greatly increase its imports of oil and gas. The other main advantage of renewable energy is that much of it – e.g. wind energy, solar energy and hydropower – does not produce carbon emissions and it therefore does not exacerbate climate change in this way.
The report provides an analysis of the production of renewable energy for the whole of the EU. It also gives a segmentation of EU production of renewable energy by main renewable energy sources (RES), i.e. biomass and wastes, hydropower, geothermal energy, solar energy and wind energy. An account is given for each country, providing details of market structure, statistics and corporate activity (covering the activities of major players).
Several issues currently face the EU renewable energy industry. Legislation is a fundamental driver of the use of RES in the EU. The EU has set a target of achieving a 20% use of renewable energy by 2020, and to achieve this in the remaining 12 years will require a vigorous implementation of legislation. However, legislation is not the only mover in the sector.
A range of incentives, tax reductions, feed in tariffs and other strategies are in use to promote the use of renewable energy. It is important that these remain attractive over the long term, to encourage investment in RES. The EU Greenhouse Gas Emission Trading Scheme (ETS) is designed to reduce carbon emissions; however one of the options in this scheme is to buy carbon certificates instead of actually reducing carbon emissions.
This can be seen as a short-term solution to carbon reduction, and thus as a diversion of attention from the principal purpose of using renewable energy, which is to provide a sustainable supply of energy that is independent of fossil fuels.
RES have the added advantage of being processes that emit low or zero levels of carbon. The use of renewable energy also reduces the EU's input of fossil fuels from regions that have unstable political regimes and/or cultures that do not always make compatible trading partners with some EU countries.
Regarding the future, it is important that – in addition to legislative and financial incentives – a suitable environment is created for the long-term development of renewable energy in the EU. This would include making improvements in the planning-consent process, to reduce project delays.
Easier connection with the main grid networks is also required. Other topics to be addressed are the encouragement of the use of micro-generation and of the use of renewable energy for heating. The EU renewable sector is growing, and it is important that a satisfactory skills and manufacturing base is developed to realise its full market potential, both within and outside the EU.
