Renewable Energy

Why do we need Renewable Energy?

Importing 50% of our energy needs illustrates we must introduce new habits of using renewable sources in place of traditional fossil fuels.

We are increasingly dependent on fuel and natural gas imports, as was highlighted in the Commission’s Green Paper on Security of Energy Supply (2000). The European Union now imports 50% of its energy needs. Around 2030, this figure is forecast to rise to 70% with an increasing share for fossil fuels.

This situation makes us particularly vulnerable economically, politically and with regard to the environment. Additionally the EU has committed itself internationally to reducing greenhouse gas emissions. In this context and even though traditional fossil fuels and nuclear energy will continue to play an important role, Europe has a special part to play in promoting renewable energy. They are an attractive option to diversify the EU’s energy supply: renewable sources are available locally, they bring environment benefits and they contribute to employment and the competitiveness of the European industry. Support for renewable energy is needed as long as technologies are still developing and market prices for non-renewable energy do not reflect their full costs to society due to subsidies and external costs.

EU targets for 2010

Double the share of renewable energy in national gross energy consumption from 6% to 12% Increase the share of green electricity in total electricity consumption from 13% to 21%

The Renewables Directive

The European Union aims to have renewable energy sources providing 21% of the electricity by the year 2010. This target has been formulated in the Renewables Directive 2001/77/EC1. Under the Directive, Member States have set up differentiated targets for the production of renewable electricity and they can choose their preferred support mechanism. The Communication referred to here, which was foreseen in the Directive, reports on experience gained with the application and coexistence of the different mechanisms used in Member States.

The report assesses the success of the support systems in promoting the consumption of renewable electricity according to the national indicative targets, including cost effectiveness, cost efficiency, compatibility with the internal market, and the ability to develop different technologies. In the year 2003, 108 KWh electricity from new renewable energy sources – that is excluding hydropower – was produced, which is equivalent to the combined overall electricity production in Portugal, Denmark and Slovenia. The graph below shows the historical development and the composition of new renewable electricity and the targets and developments in the Member States. Historical development of new renewable electricity generation in the EU-25 from 1990 to 2003.