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Globally, energy—especially electricity—demand is increasing significantly due to population growth and industrial development. Although per capita electricity consumption in some countries remains far below OECD and EU averages, the rate of increase is quite high.

In this new world order, the concept of “renewable energy” has gained prominence. With renewable energy sources, efforts to reduce energy dependency, decrease air pollution, contribute to environmental protection, and increase employment have garnered growing attention in many countries and the European Union.

As part of the European Green Deal, renewable energy has become a pillar of the clean energy transition, reflecting the EU’s ambitious goal to increase the share of renewables in its energy mix. This has led to the mutual adoption of several Energy Directives, formalizing them within a legal framework.

Significant progress has been made since Germany introduced its first feed-in tariff for renewable energy sources in 1991. On October 9, 2023, the EU Council approved a new Renewable Energy Directive (REDIII), which sets a target to raise the share of renewable energy in total EU consumption to 42.5% by 2030.

Under this directive, ambitious sectoral renewable energy targets will be set for transportation, industry, buildings, and district heating and cooling. Renewable energy deployment is deemed a “priority of public interest,” and permitting processes for renewable energy projects will be expedited. Member states will also establish “renewable energy acceleration areas,” where simplified and faster permitting processes apply.

The Renewable Energy Directive (REDIII) is a fundamental part of the European Commission’s Fit for 55 climate legislation package. The REDIII revision aims to increase the share of renewables in the EU’s overall energy consumption to 42.5% by 2030, with an additional 2.5% indicative top-up limit to reach 45%. Each EU Member State must contribute to this common target.

Key objectives of the directive include increasing renewable energy usage in industry by 1.6% per year. Additionally, 42% of the hydrogen used in industry should come from renewable fuels of non-biological origin (RFNBO) by 2030, rising to 60% by 2035.

In the transport sector, EU Member States may choose between two binding targets for 2030: a 14.5% reduction in greenhouse gas intensity from renewable energy sources or a minimum 29% share of renewables in final energy consumption within the transport sector. In buildings, there is an indicative target for a 49% share of renewable energy by 2030.

Regarding the renewable energy standings of EU Member States:

Croatia’s energy strategy relies heavily on hydropower, which accounts for more than half of the country’s electricity production. Croatia built Europe’s first hydroelectric power plant near the town of Sibenik in 1895.

France passed an energy and climate law in July 2015, setting a mandatory target for 40% of national electricity production to come from renewables by 2030. By 2016, renewables made up 19.6% of France’s total electricity consumption, with contributions from hydropower (12.2%), wind (4.3%), solar (1.7%), and bioenergy (1.4%).

In Germany, about 51% of net electricity produced in 2021 came from renewable sources. The country shut down its last three nuclear reactors in April 2023, ending nuclear energy production.

Italy achieved 38.2% renewable energy in electricity consumption in 2014, with solar energy accounting for about 9% of total electricity consumption, making Italy a leading country in solar energy contribution.

In January 2014, Portugal generated 91% of its monthly electricity needs from renewable sources. Spain aimed for 30% of its electricity to come from renewables by 2010, with half of this target achieved by wind power. By 2009, renewables provided 34.8% of Spain’s electricity demand.

Norway has the highest share of renewable energy globally, and Brazil, with a strong focus on biofuels and waste energy, generates 32% of its total energy from these sources.

These countries not only lead the way toward a sustainable future with strategic policies and investments in renewable energy but also play a crucial role in mitigating global environmental impacts.

The future of energy will be shaped by renewable energy and related strategies, fostering environmental awareness and climate consciousness worldwide.

Sources

https://www.ey.com/en_gl/technical/tax-alerts/eu-council-adopts-new-renewable-energy-rules-and-rules-for-promotion-of-sustainable-aviation-fuels-under-fit-for-55

https://www.ab.gov.tr

Renewable Energy Directive;

https://energy.ec.europa.eu/topics/renewable-energy/renewable-energy-directive-targets-and-rules/renewable-energy-directive_en

Revize Direktif EU/2023/2413

Revision of the Energy Taxation Directive (ETD)

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