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The EU electricity industry is committed to delivering a renewable-based and carbon neutral power supply in Europe well before 2050, which offers the prospect of turning Europe into a carbon-neutral economy by 2050. 80% renewable electricity: this is the impressive picture of Europe’s electricity supply in 2045 in Eurelectric’s study Decarbonisation Pathways.
Decarbonisation Pathways estimates that, on average, full decarbonisation of the power sector will require a significant increase of investments in clean generation and storage (towards 100bn euros per year over the period), as well as additional grid and infrastructure investments. As a follow-up to the study, Eurelectric set out to assess if all tools are available to translate the power sector’s commitment into reality. The Clean Energy Package is clearly a step in the right direction but investments in generation facilities, storage assets, networks and demand response will only happen if the economic signals and incentives are aligned with the high-level objectives and targets.
While global investment in renewable energy has experienced unprecedented growth in recent years, as costs of variable RES such as wind and PV have declined rapidly, it remains below its potential, especially in Europe where investment has declined. Other low carbon technologies also need to be maintained or expanded. Moreover, the huge increase in variable RES will also require investments in flexibility and infrastructure.
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