The study, on the impact of the EU's renewable energy policy, stresses that reaching a 20% share of renewables in the bloc's energy mix would add 0.24% to total gross domestic product (GDP) in the EU economy as a whole (see EurActiv LinksDossier on 'EU renewable energy policy'). Meanwhile, the green energy sector could see the creation of 2.8 million new jobs and 1.1% GDP growth, the Commission argues. The latter are significantly higher figures than those for the economy at large, with the study also looking at the impact of a robust renewables policy on other sectors of the economy.
The EU executive acknowledges that while more support for innovative energy solutions such as photovoltaics, offshore wind and second-generation biofuels will stimulate investment in the sector and fuel trade in renewables technologies, this does not come without a cost.
For example, with investment in conventional energy plunging, higher energy costs as a result of increased use of renewables will take their toll on the economy, as consumers and governments alike will have lower budgets. In this scenario, the industry as a whole could lose its competitive advantage.
Nevertheless, the study argues that strong investment overrides the negative impact of the renewables sector. While slashing greenhouse gases and ending Europe's dependence on imported fuel have been most obvious reasons to promote renewables so far, the Commission says that these latest results make the case for competitiveness too.
"This shows that benefits of renewables in terms of security of supply and fighting climate change can go hand-in-hand with economic benefits," said Energy Commissioner Andris Piebalgs.
The study explains, however, that the 2020 target for renewables will not be achieved with current support policies (EurActiv 30/04/09). A 'business-as-usual' approach will only deliver a 14% share of renewables by 2020, it claims.
Offshore wind and new technologies such as photovoltaics and tidal and wave energy are expected to hold the greatest renewables potential beyond 2020. This makes it particularly important to develop policies that promote innovation and reduce the costs of these knowledge-intensive technologies rapidly, the Commission argues.
