EU Energy: Powering Ahead With Renewables

 

May 02 - Datamonitor

EU leaders have backed a European Commission proposal for a binding 20% renewables target in the region's energy mix by 2020 and a 10% binding target for biofuels' share of the petrol and diesel markets. While these targets seem bullish, especially as the EU has missed previous goals, they are not impossible. However, to be successful, the EU will need to ensure that it covers all energy sectors.

When assessing how likely it is that the EU will achieve its goal, it is important to remember that the 20% renewables target refers not just to electricity generation, but also to heating and cooling, as well as biofuels. In addition, 20% is the overall EU target, and individual targets vary between each member state. Spain, for example, already generates a significant proportion of its electricity from hydro sources, and so has a significantly higher target than countries such as the UK, which is starting from a much lower renewables base.

In terms of electricity generation, much depends on the capacity to produce electricity from renewable sources. Progress in this field has been good in the last few years, which bodes well for the future. Indeed, non-hydro renewable electricity generation in the EU more than doubled between 2000 and 2005. However, predictions based on current data show that it is likely that renewable sources will contribute 18% to 19% of electricity consumption in Europe by 2010, two to three percentage points lower than the target of 21%.

It is also true, however, that the EU missed its biofuels target in 2005, with biofuels making up around 1% of road fuel rather than the planned 2%. Furthermore, the EU has also accepted that it is likely to miss its 2010 target.

However, biofuels have made some significant inroads in certain countries. For example, in Germany, biofuels represented 3.75% of total transport fuels consumption in terms of energy content in 2005. Furthermore, EU member states have introduced fuel blending obligations for service stations, which should go a long way towards increasing the uptake of biofuels.

Going forward, although meeting the renewables target is possible, it will be difficult. In order to achieve this goal, as well as setting binding targets for renewables within electricity generation and biofuels, the EU should also provide a directive for the cooling and heating sector, which has not yet been covered by its plans.