For the first time in 2022, the amount of energy generated by wind and solar overtook the amount generated by gas and nuclear power.
Image Courtesy of: https://www.weforum.org/agenda/2023/01/renewable-energy-electricity-record-europe/
According to the European Environmental Agency (EEA), 22.8% of energy consumed in the EU in 2022 was generated from wind and solar power, and renewables overtook the amount of energy produced by nuclear power and gas for the first time. Nuclear power produced 21.9% of the EU’s energy in 2022, gas produced 19.9%, coal produced 15.99%, hydropower produced 10.12%, and bioenergy produced 5.96%. 2022 is the most recent year that the EU has compiled energy data.
The EU has grown its use of renewable energy resources compared to ten years before (2012). In 2012, nuclear power produced 27.9% of the EU’s energy, coal produced 25.55%, gas produced 16.68%, hydropower produced 11.41%, wind and solar produced 8.86%, and bioenergy produced 4.57%.
The highest use of renewables in 2022 in the EU occurred in the power sector, as 41.2% of all electricity was generated from renewable sources. 24.9% of energy was generated by renewables in the heating and cooling sector, and renewables generated 9.6% of all energy in the transport sector. According to Eurostat, the share of renewable energy in the EU increased by 1.2% to 23% in 2022 when compared to 2021 levels. Solid biomass is the largest renewable energy resource in the EU and accounts for 40% of the renewable energy supply, followed by wind at 15%, hydropower at 10%, and biofuels at 7%. Solid biomass is most commonly used in electricity generation, industry, and residential heating.
The EU’s Renewable Energy Directive, which has had three iterations (2009, 2018, and 2023), has played a significant role in the increasing trend of renewable energy usage in the EU. The 2018 directive was revised in 2023 due to the increasing need to speed up the EU’s green energy transition, and the EU’s newest renewable energy target is 42.5% of all energy that should be produced by 2030. Under this directive, each of the EU’s Member States will contribute to achieving the common renewable energy target. No specific targets were introduced for individual Member States.
However, part of this revised directive included the creation of new sub-targets in the Member States for transport, industry, and the buildings sector. In the transport sector, Member States can choose between a binding target of a 14.5% reduction of greenhouse gas intensity from renewables by 2030 or a binding share of 29% of renewables within final energy consumption in transport. In relation to industry, the revised directive mandates an annual increase in the use of renewable energy by 1.6% in the EU and a 42% share for renewable hydrogen used by industry in 2030. The directive further sets a target of 49% for renewable energy share in buildings in 2030 and a binding annual increase of 1.1% of renewable energy use in buildings from 2026 to 2030.
Stabilizing and lessening the energy costs for individuals and corporations who utilize renewable energy resources will be pivotal in ensuring a smooth transition to renewables and has been important in facilitating an increase in renewable energy usage over the last several years. Carbon pricing through the EU Emissions Trading System (ETS) and EU funding into renewables investment through funding sources like its cohesion policy have been two pillars to facilitate renewable energy development. For example, in Spain, during the 2021-2027 financing period of the EU’s cohesion policy, €149.4 million has been invested into the development of wind renewable energy, and €783.5 million has been invested into solar energy development. In Italy, €47.9 million has been invested in wind energy development, and €701.3 million has been invested in solar energy development.
The EU renewable energy financing mechanism also entered into force in September 2020. This mechanism allocates funding to new renewable projects through competitive tenders for grants. The grants provide either investment or operating support in the electricity, heating, cooling, and transport sectors through either the installation of a new renewable production facility or the actual production of renewable energy. The European Commission selects projects and grants awarded by the European Climate, Infrastructure and Environment Executive Agency (CINEA).
For renewables to continue to expand their share of the energy market in the EU, one activity that the EU should engage in is ensuring that sufficient land is available to build renewable energy structures. The EU’s population density and increasing land-use concerns have made it challenging to find areas where onshore wind and solar power technology can be developed. For example, to reach the EU’s 2040 targets for renewable energy usage in France, Italy, and Germany, an additional land area of 23,000 to 35,000 km2 will be required, equivalent to Belgium’s size. As such, EU policymakers should consider accelerating procedures allowing land permits to be obtained. In some major EU countries, permitting times currently range from three to ten years for onshore wind installations and two to six years for solar installations. By relaxing regulations in areas like distance-to-settlement and increasing the identification of areas suitable for renewable development, the permitting process time can be shortened, and the EU will find it easier to achieve its renewable energy goals.
Another activity the EU should consider to expand renewable energy’s share of the energy market is the creation of resilient supply chains for decarbonization technologies. One of the issues in increasing renewable energy usage the EU has faced is that essential raw materials for decarbonization technologies originate in a small handful of countries. For example, the EU’s supply of the rare-earth metals neodymium and praseodymium, used in electric vehicles and wind turbines, depends heavily on China’s refining capacity. As such, geopolitical tensions could put the EU’s supply of these materials at risk and lessen the EU’s ability to develop renewable energy technologies. To combat this, the EU should develop partnerships with suppliers in diverse locations and scale up European manufacturing of critical technologies through incentives like local content requirements or subsidies.
This post was submitted by EU Country Manager Brittany Demogenes.
Learn More Resources:
https://www.eea.europa.eu/en/analysis/indicators/share-of-energy-consumption-from