EU report predicts strong growth for renewables with efficiency

BRUSSELS, Belgium, August 30, 2006 (Refocus Weekly)

The share of renewable energies could reach 20% by 2020 in Europe, under a combined scenario of high energy efficiency and high renewables.

The report, ‘European energy & transport - Scenarios on energy efficiency & renewables,’ was prepared by the European Commission’s energy directorate. It examines several scenarios in efficiency and renewables, reflecting policies which currently are under discussion, and the scenarios include one of high energy efficiency and one of high renewables, and a combined scenario of a high efficiency and high renewables in which the share of renewables reaches 20% in 2020.

The results were derived from the PRIMES model by a consortium led by the National Technical University of Athens, and provides projections to 2030 with details on energy demand, transformation, imports and production by fuel and sector. The report also gives a breakdown for six different regions: EU-25, EU-15, EU-10, EU-27, EU-28 and Europe-30.

“Energy efficiency and renewables are central to EU and Member States’ energy and climate policies as they contribute substantially towards reducing CO2 emissions, helping to meet EU’s international obligations, either through curbing energy demand or through providing alternative carbon free supplies,” say authors L. Mantzos and P. Capros. The importance of efficiency and renewables policies is emphasized in the recent Green Paper on a European strategy for sustainable, competitive and secure energy, and the European Commission has undertaken a number of policies and measures towards improving efficiency and increasing the contribution of renewables.

The ‘high renewables’ scenario assumes that additional incentives are provided both to energy consumers and energy producers so that the global indicative target of a 12% contribution from renewables to gross energy consumption in 2010 is reached. Strengthening of these incentives beyond 2010 is assumed towards achieving a contribution from renewable energy sources to gross energy consumption close to 20% in 2020.

Demand for all energy forms declines compared to the baseline projections, with the biggest fall projected for nuclear and solid fuels. A slowdown in electricity demand growth, due to greater energy efficiency, and higher exploitation of co-generation in the power generation sector means both nuclear and solid fuels lose market share in primary energy needs, while the share of oil increases 3.1 percentage points over baseline by 2030, while renewables rise 1.1 percentage points and natural gas rises 1.0 percentage points from baseline.

“Better energy efficiency makes a small contribution towards increasing the share of renewables in the medium and long term (about one percentage point more) due to reduced overall energy demand,” while limiting the growth of electricity demand causes energy efficiency to curtail the potential for green power (notably wind), it explains.

“The EU has been supporting renewable energy sources for some time notably through Directives on electricity from renewables and on biofuels,” while the ratification of the Kyoto Protocol and the process of integrating the environment into energy policy will underpin a greater role of renewables, it explains. The long-standing objective to reach a share from renewables of 12% in gross energy consumption may be complemented by a target for 2015 and/or 2020, with the conclusions of the European Council of March 2006 mention a share of renewables of 15% in 2015, and a share of 20% for 2020 is under discussion.

“Strong action on renewables in the ‘high renewables’ case lead to significant changes in the future evolution of the fuel mix while overall primary energy demand remains essentially unchanged from baseline levels in 2010, exhibiting a limited decline thereafter of -1.8% below the baseline in 2030,” it explains. “There are significant changes in the fuel mix with demand for renewables growing at rates well above those in the baseline scenario (5.2% pa in 2000-2030 compared to 3.0% pa in the baseline), a growth that occurs to the detriment of all other energy forms.”

In 2010, renewables account for 11.6% of primary energy needs (a rise of +3.6 percentage points from baseline levels). In 2020, the use of renewables in the EU-25 energy system increases by 84% from baseline levels with their share reaching 19.3% compared to 10.4% in baseline, and “an even higher renewables share can be achieved with the same intensity of renewables promotion if renewables policies are combined with energy efficiency policies.”

“The further strengthening of promoting policies for renewables up to 2030 leads to an increase of the renewables share reaching 24.0% (+11.8 percentage point from baseline),” it adds. “Higher exploitation of biomass and waste is the key driver for the substantial increase of the renewables share accounting for about 70% of incremental renewables demand.”


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