Renewable energy in the European Union

Renewable energy plays an important and growing role in the energy system of the European Union. The Europe 2020 strategy included a target of reaching 20% of gross final energy consumption from renewable sources by 2020, and at least 32% by 2030. The EU27 reached 22% in 2020 and 23% in 2022, up from 9.6% in 2004. These figures are based on energy use in all its forms across all three main sectors, the heating and cooling sector, the electricity sector, and the transport sector.

The main source of renewable energy in 2019 was biomass (57.4% of gross energy consumption). In particular, wood is the leading source of renewable energy in Europe, far ahead of solar and wind. In 2020, renewables provided 23.1% of gross energy consumption in heating and cooling. In electricity, renewables accounted for 37.5% of gross energy consumption, led by wind (36%) and hydro-power (33%), followed by solar (14%), solid biofuels (8%) and other renewable sources (8%). In transport, the share of renewable energy used reached 10.2%.

The share of renewable energy has grown in all member states since 2004. The leading state is Sweden, with 66% of its energy provided by renewable sources as of 2022, followed by Finland (47.9%), Latvia (43.3%), and Denmark (41.6%). The lowest proportion was recorded in Ireland (13.1%), followed by Malta (13.4%), Belgium (13.8%), and Luxembourg (14.4%).

The renewable energy directive enacted in 2009 lays out a framework for individual member states to share the overall EU-wide 20% renewable energy target for 2020. Promoting the use of renewable energy sources is important both to the reduction of the EU's energy dependence and in meeting targets to combat global warming. The directive sets targets for each individual member state taking into account the different starting points and potentials. Targets for renewable energy use by 2020 among different member states varied from 10% to 49%. 26 EU member states met their national 2020 targets. The sole exception was France, which had aimed for 23% but only reached 19.1%. By 2022, Austria, Ireland, and Slovenia had dropped below their 2020 targets.

In 2023, energy costs increased for 83% of EU enterprises, and by more than 25% for 68% of EU firms. Electricity rates in the European Union are typically three times higher than in the United States for example. Companies therefore increased their investment in energy efficiency, and spending in energy efficiency has increased to 51%. 78% of EU enterprises have implemented energy-saving measures in response to changes in the energy markets.