Green energy in European industry

The war in Ukraine, its implications for global energy supply and especially for the EU, and the worsening effects of climate change have made headlines around the world this year. We read about volatile global energy prices, fears of winter energy shortages and historic droughts affecting agricultural production at a time when food prices were already rising. These problems are interconnected. If we could replace fossil fuels with sufficiently abundant renewable energy, we would lower energy prices, reduce emissions, and mitigate future climate change risks, including impacts on food production.

Fossil fuels are becoming a thing of the past

Fossil fuels such as oil, natural gas, and coal are formed from the decomposing remains of plants and animals that have evolved over millions of years into their current forms in the Earth's crust. These fuels contain chemical energy that is released along with various pollutants when burned.

Compared to electricity, which can be generated from renewable sources such as solar and wind energy but is quite difficult to store, fossil fuels are easier to store and transport to the end user. Energy infrastructure and technologies developed since the industrial revolution are heavily reliant on fossil fuels.

In recent years, EU policy has set ambitious targets to accelerate the transition to sustainable energy. And they have already started to bear fruit: an increasing share of Europe's energy needs are being met by renewable energy. In 2021, more than 22% of final gross energy consumed in the EU came from renewables. However, the share of renewables in the EU's energy mix varies considerably: in Sweden it is around 60%, in Denmark, Estonia, Finland and Latvia over 40%, and in Belgium, Hungary, Ireland, Luxembourg, Malta and the Netherlands between 10 and 15%.

Electricity from renewable sources

According to Eurostat, wind and hydropower will account for more than two-thirds of the total electricity generated from renewable sources (36% and 33% respectively) in the EU in 2020. Solar power (14%), solid biofuels (8%) and other renewable sources (8%) account for the remaining third.

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Is the potential of renewable sources infinite

Natural sources such as solar, wind, tidal and geothermal energy have the potential to generate far more energy than humanity needs today. However, this potential has not yet been fully realized. One challenge is to create sufficient capacity to capture energy, such as sunlight or wind, and convert it into a usable form such as electricity. Another challenge is to transport this energy to places of consumption or store it for later use.

The energy system of the future must be resilient and adaptable to the inevitable effects of climate change, such as droughts, heat waves and hurricanes. As the proportion of wind and solar energy increases, the system must be flexible enough to function well even in the absence of wind or solar.

A flexible energy system can ensure a constant supply of energy and reduce peak demand. In addition to providing a variety of energy sources, the system can be improved, for example, by optimizing energy storage, intelligently integrating the heating, transport and industrial sectors, or addressing peak demand through dynamic pricing or smart grids and devices.

Wind and solar projects in Europe

Many recent projects across Europe are beginning to show the huge potential of renewable energy. In August 2022, Spain's Iberdrola launched Europe's largest solar power plant in western Spain with 1.5 million solar panels and a capacity of 590 megawatts, which will generate enough electricity to supply more than 330,000 households.

The 49 wind turbines of Denmark's Horns Reef 3 offshore wind farm have a total capacity of 407 megawatts and are estimated to be able to supply the annual electricity consumption of about 425,000 Danish households.Portugal is installing Europe's largest floating solar park on the Alqueva Reservoir, consisting of 12,000 panels. In April, Greece inaugurated a 204-megawatt bifacial solar power plant that can collect light from two sides.

The REPowerEU plan, which aims to accelerate the transition to renewable energy and reduce Russia's dependence on fossil fuels, is designed to incentivize these projects. The EU Solar Strategy aims to double solar panel capacity by 2025, and the European Solar Roof Initiative calls for mandatory solar panels on large public and commercial buildings, and gradually on newly built residential buildings. The permitting process for large renewable energy projects should also be simplified.

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Energy systems and storage

The challenge of switching to renewable energy is not just about production capacity. Power plants need to be connected to a grid that can take the growing production capacity and bring it to the end users.

In order to ensure a stable electricity supply, encourage the use of renewable energy and reduce transmission costs, some regions, for example, are encouraging homeowners or businesses to become producer-consumers that generate electricity from solar panels, consume a portion of it and feed the excess energy back into the grid.

A recent EEA report suggests that many opportunities are already available to European prosumers that can benefit both their own households and society. By investing in energy production or storage, consumers can save on their energy costs, accelerate Europe's energy transition and reduce greenhouse gas emissions. Moreover, these opportunities can be expected to increase in the coming years, thanks to better and cheaper technologies and new incentive policies.

Many energy suppliers have also started to encourage households to adapt their energy consumption to production levels. This is possible through dynamic pricing that depends on the time of day and varies from hour to hour. During periods of excess production, consumers can receive electricity almost for free, which can be used, for example, to charge electric vehicles.

Clean energy in the circular economy

Producing more solar panels or wind turbines also raises some difficult questions: can we get enough of the minerals used in solar panels or wind turbines? Where can wind farms be installed? How do these power plants affect wildlife? And how can resources such as rare earth minerals used in their production be made available?

EPA's analysis found that the growth of renewable energy has helped reduce many global pressures on nature and climate, and targeted measures can help reduce some negative impacts, such as freshwater ecotoxicity and land use. With the increasing number of renewable energy projects, trade-offs for ecosystems and habitats need to be evaluated.

The Energy and Industry Geography Laboratory, developed by the European Commission's Joint Research Center, is a new tool to address some of these issues. The lab can be used to identify the most suitable locations for wind and solar farms, such as locations away from protected areas or bird migration routes.

To increase the supply of clean electricity, we need to increase generating capacity and make changes to infrastructure. This means more solar panels and wind turbines, as well as better connections to smart grids and, crucially, intelligent users who pay attention to energy efficiency. Any decisions we make must take these long-term sustainability considerations into account.

Rapid and fundamental change

Europe needs rapid and fundamental changes in production and consumption systems. The transition to sustainable development affects different people in different ways. It is therefore very important to ensure a just transition and not to leave the most vulnerable people behind.

EEA believes that Europe's most vulnerable citizens are disproportionately affected by air pollution, noise and temperature extremes. According to another EEA study on "just sustainability", vulnerable groups such as the elderly, children, low-income groups and people with health problems or disabilities are most affected by climate change. In addition, climate adaptation measures can exacerbate existing inequalities or even create new ones.

Europe needs to improve energy efficiency and reduce its dependence on fossil fuels. However, not all Europeans have the same opportunities to install heat pumps, renovate their homes or buy new electric cars. In rural areas, public transportation often works poorly. Fuel poverty can mean an inability to maintain good heating in winter.

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Equitable sustainability

The EEA's Equitable Sustainability study emphasizes that measures aimed specifically at the most vulnerable groups are needed to ensure that they are not left behind. For example, green spaces can be invested in where they are most needed during heat waves or for flood protection. Furthermore, the costs and efforts to adapt to climate change should not fall disproportionately on the most vulnerable.

The EU's Just Transition Fund aims to mobilize around 55 billion euro between 2021 and 2027 in the most affected regions to mitigate the socio-economic impacts of the transition to sustainable development envisaged in the European Green Deal. The proposal for an EU Social Climate Fund aims to address the social impacts of extending emissions trading to the construction and road transport sectors. The fund would provide direct assistance to vulnerable households as well as support investments aimed at reducing emissions in these two sectors.

Over time, Europe's transition to sustainable development also implies intergenerational equity, i.e. equality between current and future generations. By improving the long-term prospects for Europe's economy, environment, climate and social cohesion, current actions aim to create a better future for the next generations. Intergenerational responsibility is also one of the core principles of the EU's 8th Environmental Action Program.