Europe could become energy self-sufficient in $2 trillion push

A new study suggests that Europe could transition away from fossil fuels and establish a self-sustaining energy sector by investing approximately 2 trillion euros ($2.1 trillion) in solar, wind, and other renewable sources by 2040. The report, led by the Potsdam Institute for Climate Impact Research, indicates that the continent would need annual investments of 140 billion euros by 2030 and 100 billion euros per year in the following decade to achieve this goal.

The majority of these funds would be allocated to expanding onshore wind power, with solar, hydrogen, and geothermal resources serving as additional pillars in a strategy that would enable Europe to exclusively power its electricity needs from renewable by 2030. The study also estimates that it would take an additional ten years to transition the entire energy system, including heating currently reliant on oil or gas, to renewable sources.

The study emphasizes the significance of these figures while noting that European countries spent an additional 792 billion euros in the previous year to maintain the existing energy system and shield consumers from the consequences of the energy crisis resulting from the Russian-Ukraine war.

European lawmakers recently gave their final approval to legally binding targets aimed at accelerating the expansion of renewable energy in this decade, a pivotal component of Europe's efforts to combat climate change and reduce its dependence on fossil fuels. The new law increases the EU's renewable energy targets, mandating that 42.5% of EU energy should be derived from renewable sources by 2030, replacing the previous target of 32%.

This scientific study, commissioned by Aquila Capital, one of Europe's leading private investors in renewable energy, echoes industry concerns regarding European regulations and calls for faster project approvals to ensure that these targets are met. The study also highlights the need for renewable energy supply to grow by 20% annually to meet the expected power demand by 2030.