Brussels (Platts)--17Nov2009/536 am EST/1036 GMT

The renewables industry could boost EU GDP growth by as much as 0.5%, Anil Srivastava, CEO for French engineering company Areva's renewables business, told a renewables conference in Brussels on Monday.

"0.2-0.4 or even 0.5% of EU GDP growth could come from renewables in the EU," he said.

Srivastava highlighted the key role that his industry could play in turning around the financial crisis.

"The energy industry is facing three main challenges: a lack of growth--we need to create jobs--climate change, and greater energy independence," he said.

But renewable energy, particularly wind, could be a major player in meeting these challenges, he said.

The recent economic crisis, including a spike in oil prices in July 2008, had given renewables a boost, but the sector now needed greater policy guidance and funding to ensure growth, said Srivastava.

A senior European Commission official agreed that with many of Europe's power plants coming to the end of their life, the time was ripe for "renewable to get a look-in."

"Big drivers towards renewables have been the EU gas crisis at the beginning of 2009 and the [EU's integrated pollution prevention and control] directive," said Hans van Steen, head of the EC energy department's renewables unit.

"Carbon pricing should continue to get more expensive and this should also encourage a turn towards 'greener' resources, he said.

But financing was still an issue. "We need to tempt investment in low carbon technologies," he said. The EC has earmarked Eur565 million ($841 million) for offshore wind projects under a 2009 to 2010 EU energy fund, as part of a wider EU economic recovery plan.

"[The EC] can be a catalyst," he told Platts, but added that the bulk of financing for renewable would need to come from the private sector.

--Jane Morecroft, newsdesk@platts.com