The production and use of energy account for more than 75% of the EU’s greenhouse gas emissions. Decarbonizing the EU’s energy system is therefore critical to reach our 2030 climate objectives and the EU’s long-term strategy of achieving carbon neutrality by 2050.
The European Green Deal focuses on 3 key principles for the clean energy transition, which will help reduce greenhouse gas emissions and enhance the quality of life of our citizens:
Ensuring a secure and affordable EU energy supply
Developing a fully integrated, interconnected and digitalized EU energy market
Prioritizing energy efficiency, improving the energy performance of our buildings and developing a power sector based largely on renewable sources
The European Commission adopted a set of proposals to make the EU's climate, energy, transport and taxation policies fit for reducing net greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels. Reducing greenhouse gas emissions by at least 55% by 2030 requires higher shares of renewable energy and greater energy efficiency. The Commission proposes to increase the binding target of renewable sources in the EU’s energy mix to 40%. The proposals promote the uptake of renewable fuels, such as hydrogen in industry and transport, with additional targets.
Cost of electricity generation from wind and solar PV is now comparable with fossil fuels
(Source: EU - Special Report No 08/2019: Wind and solar power for electricity generation)
The electricity generation industry uses the levelised cost of electricity (LCOE) indicator to calculate the cost for producing electricity under different renewable and non-renewable technologies. It represents the per MWh cost of building and operating an electricity generation plant over an assumed financial life.
According to IRENA, in 2017 the cost of electricity generated using renewables was often comparable with that of fossil fuels (see the Figure below). The global LCOE for wind has been within the fossil fuel cost range for some years now. More recently, the LCOE for solar photovoltaic (PV) installations has also sunk to comparable levels, driven by an 81 % decrease in the cost of panels and other installation items since the end of 2009.