EURELECTRIC is committed to achieving a carbon-neutral power supply in Europe by 2050. Renewable energy sources (RES) are fundamental contributors to the decarbonisation of the power sector. For instance, meeting the EU’s target of a 20% share of RES in final energy consumption by 2020 requires the power sector to contribute with a RES share of 35%. The 2030 framework with, a 27% EU RES target and a 40% GHG reduction target have been estimated to imply a share of around 45% RES in the power sector . This represents a key investment opportunity for the power sector: our industry is and will remain a major investor in RES electricity generation.
RES cover more than ten different technologies which different characteristics – for instance, some are variable (i.e. not constantly available) while others are not. As these technologies are implemented to an ever greater extent, their deployment costs decrease. In 2014, 28% of the EU 28 electricity output was coming from renewables. Hydropower, a mature technology, represented 41% of this output, and, as the other RES technologies, it has the potential to develop further.
The growth of renewables (RES), which is necessary to pursue the European decarbonisation agenda, brings a new reality to power systems. The EURELECTRIC response to Consultation on the preparation of a new Renewable Energy Directive for the period after 2020 proposes solutions that reconcile RES development and market integration while ensuring security of supply, in line with consumer demands. Policy must achieve operational integration of renewables into energy markets, adapt existing support schemes and introduce new mechanisms to minimise market distortion. Post-2020, the ETS should be the main driver for RES investments. We also believe that Europe should adopt a regional approach to market design that avoids uncoordinated national developments, in particular in regard to the implementation of capacity markets.