The EU-27 countries are trying to lower carbon emissions and build an inter-connected, efficient energy system. New targets created by the EC call for the following by 2020: the reduction of greenhouse gas emission by a least 20%; improved energy efficiency by 20%; a 20% rise in the share of renewable energy; and a 10% increase in the level of biofuels transport fuel. In trying to meet these objectives, a new energy market is beginning to evolve.
In the last decade newly installed renewable energy technologies are starting to gain a notable share of the market. ‘This latest report from Business Insights documents the growth of this new market, showing its current status and projecting where it is likely to grow to in the foreseeable future. This report gathers the statistical data on the different types of energy generation and combines and contrasts them against each other to show the clear leaders, drivers to change and future growth.
A fast growing wind market (7.9%) has recently overtaken the market share of fuel oil (6.9%). Biomass (1.0%), Solar (1.2%) and Geothermal (1.0%) maintain almost equal shares and are currently the minority parties in the capacity market.
There is little question that wind power is the success of the renewable electricity generation technologies in terms of recent capacity installed: the EU represents 55.1% of the global total installed capacity of wind power. It is clear that Europe is leading the world in the rapid installation of this technology, as North America has a market share of 23.4%, and Asia accounts for 20.7%.
Germany, Spain, Italy, France and the UK accounted for over 70% of new capacity installed in 2008. At the end of 2008, Germany and Spain accounted for over 60% of all European wind capacity (cumulative).
Solar capacity installed in the EU in 2008 recorded the industry’s largest one year growth volume. Germany and Spain lead the field with Germany installing in 2008 1,505MW in addition to the countries existing 3,846MW, and Spain installing 2.6GW giving the county a total of 3.4GW.
The EEA forecasts growth of energy consumption at 19% (2004-2030), while the EIA forecasts 12.8% (2005-2030), in both cases well ahead of population growth rates.
Under this report’s the reference scenario forecast for wind and solar power generation, generation growth could increase from 172.3TWh in 2008 to 583.5TWh in 2020.
This report is available to current London Business School staff, students and faculty from the Business Insights database which can be found of the A-Z of library databases via Portal
Photo from Creative Commons: Flickr: Margolove