Analysis of renewable energies in European Union [628206]

Analysis of renewable energies in European Union
Mihaela Pacesilaa,n, Stefan Gabriel Burceaa,1,S ofia Elena Colescab,1
aAcademy of Economic Studies, Departament of Administration and Public Management, Calea Serban Voda 22-24, Bucharest, Romania
bAcademy of Economic Studies, Research Centre in Public Administration and Public Services, Calea Serban Voda 22-24, Romania
article info
Article history:
Received 2 April 2015Received in revised form1 August 2015Accepted 27 October 2015
Available online 11 December 2015
Keywords:
European Union
Renewable energiesEnergy dependenceCountry rankingabstract
The paper's main research objective is to analyse the renewable energy sector in the European Union
member states. The first step of the research was to generate clusters of countries based on the share of
renewables in total energy produced and the countries ’energy dependence. In order to generate the
clusters, we applied the k-means clustering method based on the data obtained from Eurostat. By using
the Statistical Package for the Social Sciences, three clusters of countries have been generated. In the next
step the EU states were ranked based on the following criteria: share of renewable energy sources, shareof renewable electricity, share of renewable heating and cooling and share of renewable energy in
transport. Then the main characteristics of the renewable energy policy in each member state have been
highlighted.
&2015 Elsevier Ltd. All rights reserved.
Contents
1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156
2. Literature review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158
3. Research methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1594. Results and discussions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161
4.1. The state of renewable energy in the countries of the first cluster . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161
4.2. The state of renewable energy in the countries of the second cluster . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1634.3. The state of renewable energy in the countries of the third cluster. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165
5. Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168
1. Introduction
The need for energy is growing, conventional sources being
limited and fast depleting [1]. Unknown quantities of coal, gas and
oil reserves are buried deep in the ground or under the ocean.Therefore, identi fication of new sources is becoming increasingly
difficult and expensive and the exploitation is very dangerous
either due to accidents when drilling under the ocean floor, or to
the need to burn large amounts of natural gas for re fining when it
comes to oil sands [2–4]. Besides, using nuclear fuels involvesmany risks that threaten humans health and safety, as well as the
environment [5]. Human errors and colossal mechanical failures
could generate huge costs and devastating effects on human
health killing thousands of people in a short period of time and
tens of thousands in the long term due to the radiation generated[6], as well as large areas of radioactively contaminated land [3].
Moreover, global warming and energy crises have direct con-
sequences on the quality of human life [7].
Under these conditions, renewable energy sources are an
option worthy of serious consideration for governments [8]
because they could be easily identi fied and explored without
causing major accidents or dangerous situations [9]affecting life
on earth and as technology and infrastructure will be improved,
the energy produced will be very cheap [10].Contents lists available at ScienceDirect
journal homepage: www.elsevier.com/locate/rserRenewable and Sustainable Energy Reviews
http://dx.doi.org/10.1016/j.rser.2015.10.152
1364-0321/ &2015 Elsevier Ltd. All rights reserved.
nCorresponding author. Tel.: ț40 213354653.
E-mail addresses: pacesilamihaela@gmail.com (M. Pacesila),
stefanel_burcea@yahoo.com (S.G. Burcea), sofia.colesca@man.ase.ro (S.E. Colesca).
1ț40 213354653.Renewable and Sustainable Energy Reviews 56 (2016) 156 –170

Despite debates aroused by costs installation in many countries
[11], renewables are considered a key element in the European
energy policy [12] because they could cover a large proportion of
the European Union's energy needs. Moreover, they help Europe to
maintain and defend its leadership position in terms of innovation
at global level [13] by developing new technologies and generating
employment opportunities.
The signi ficant energy potential and the high availabilities of
use at national and local levels [14] convert renewable energy into
an important option creating many bene fits for the states.
Renewables give European Union member states the possibility of
developing a competitive, reliable and sustainable energy sector,contributing to solving the most pressing energy issues andchallenges facing the community:
–reduce the countries dependence on imports of energy, espe-
cially dependence on fossil fuels such as oil, coal and natural gas
The growing demand for energy increases fossil fuels imports
from countries rich in natural gas and oil, which involve economic
costs. Political and economic problems and challenges of supplier
countries are a source of uncertainty and risk in energy supply [15]
and the increasing dependence on foreign energy sources couldlead to rivalry by deciding who gets control over global energy
resources that could escalate to a military confrontation [16].
European Union countries are dependent on imports of fossil
fuels [13], especially oil and gas, about half of energy consumption
coming from imports [17]. The dependence of these countries on
imported energy resources results in a low-power security. How-ever, increasing security in energy supply involves not only
reducing imports and growing domestic production, which
according to the European Commission would mean a too sim-plistic approach to problem solving, but requires the identi fication
of rigorous and complex solutions. Such an approach would
include, among others, the diversi fication of energy and alter-
native energy, the development of technologies in the field and a
new energy demand management [18].
–increase security in the energy supply
Security of energy supply is a vital ingredient for any nation's
survival, and insuf ficient energy sources contribute to the
increased vulnerability of national economies [19] tofluctuations
in energy products prices in the international markets. EU energyvulnerability generated by high import dependence [20] may
cause serious problems in security of energy supply in the absence
of measures to deal with this challenge. Additionally, the oilmarkets are very volatile [21], with large price differences from
one period to another.
Based on these issues and on the fact that the energy situation
varies from country to country and from region to region, we could
consider renewable energy as an important way to fight these
problems, with the possibility of becoming a major player in theenergy market [22] and making a substantial contribution of
increasing energy supply security [23] in the European Union
countries. Moreover, security of energy supply is one of the most
important factors in strengthening the Union's stability [24] and
the bad experiences in international energy markets and unex-
pected oil crises have turned it into an important issue on the EU
political agenda [25]. In addition to energy security and indepen-
dence, renewable energy involves lower imports, reducing fundsfor imports of conventional energy [26].
–meet targets for reducing carbon emissions and ensure protec-
tion of the environmentWorld leaders have pledged to gradually reduce emissions of
greenhouse gases, especially carbon dioxide by 2050 in order to
reduce the magnitude of climate change impact. In this context,
EU heads of states have established to reduce greenhouse gases
emissions 80 –95% below 1990 levels by 2050. Another European
Union ’s commitment set for 2020 refers to reducing greenhouse
gas emissions 20% below 1990 levels, which is one of the main
objectives of Europe 2020 Strategy. In addition, EU 15 member
states are signatories to the Kyoto Protocol in order to reduce their
collective emissions 8% below 1990 levels, and most countries
having joined the EU on May 2004 are on track to achieve the
objectives of Kyoto Protocol [27].
The main cause of carbon dioxide released into the atmosphere
are the fossil fuels [28,29]used to produce both electricity and
heat, which leads to an enhanced greenhouse effect known as
global warming. Among greenhouse gases that contribute to glo-
bal warming, nearly three-fourths of the emissions are repre-
sented by carbon dioxide [30]. Over the last century the use of
fossil fuels has generated the highest levels of carbon dioxide
emissions [31], hitting a record that has never been done before.
Without strong and policy action in the area, atmospheric carbon
dioxide concentrations would double over the next 50 years
leading to ampli fied global warming which will be between
1.8 and 6.3 degrees Fahrenheit. The immediate effects would
consist in melting glaciers and rising sea and ocean levels as well
asflooding thousands of miles of coastlines [32,33]. The rise in
global temperature could also lead to extreme weather events
such as droughts, floods and heat waves [34] as well as a number
of other effects including increases in heat -related deaths ,loss of
plant and animal species [35] and the spread of pests and diseases.
In fact, according to specialists, carbon dioxide effects will also
be felt the next millennium due to carbon dioxide accumulation in
the atmosphere and oceans, which are characterized by a gradualwarming up process compared to earth [36].
In this context, renewable energy proves to be a strategic
investment, more friendly to people and environment than con-
ventional energy which causes health problems such as casual
respiratory diseases as well as fatal diseases like cancer [37,38]
and many environmental problems and challenges facing
humanity today such as greenhouse gas emissions, air pollution,
water and soil contamination [39]. Therefore, renewable energy
technologies, still under development, could be used to produce
electricity and heat, and the amount of carbon dioxide released
into the atmosphere would be small or almost nonexistent [40].
Renewable energy has also some impacts on the environment,
but they are much lower [41]. On one hand, biomass plants may
release carbon dioxide emissions [42,43]and on the other hand
wind energy could change the landscape and cause death or injury
of some birds [44] due to installation of speci fic devices. The
construction of hydropower plants could also damage wildlife,
altering ecosystem processes [45,46]. Compared to fossil fuels
burning, the effects of installing renewable energy technologies
are small and localized; however they must be carefully examined
in order to be attenuated where it is possible.
Aside these issues and challenges whose resolution is con-
sidered a priority task because they are seen as necessary condi-
tions for an economic sustainable development, the bene fits of
renewables for countries and regions are enormous.
In a time of uncertainty and economic crisis the renewable
energy industry records a signi ficant increase providing jobs [47]
and helping countries and regions to improve their economic
competitiveness [48] through long-term stabilization of energy
prices [49] and the reduction of expensive additional controls
generated by pollution -intensive industries [50]. Therefore,
renewable energy offers opportunities for economic development,
especially as they are available everywhere and have suf ficientM. Pacesila et al. / Renewable and Sustainable Energy Reviews 56 (2016) 156 –170 157

generating capacity, being considered as economically competitive
as conventional energy in the long term [51].
The different types of renewable energy are generally used to
cover human energy requirements: electricity, heating, cooling
and transport sector [52]. Currently, renewable energy sources
such as wind, hydro-energy and even biomass are used to produce
electricity and their share in the electricity generation is expected
to grow strongly in future [13].
Half of the final energy consumption in the European Union is
used in home heating and cooling systems [53]. Although the
potential of renewable energy sources such as biomass, solar and
geothermal energy is enormous, they represent only about 12% of
this sector's generating capacity [13].
In recent years, greenhouse gas emissions have dramatically
increased due to the transport sector development [54]. The best
way to solve this problem is to replace gasoline and diesel with
biofuels [55] such as bioethanol, biogas and biodiesel which emit a
third less carbon dioxide than fossil fuels [56]. Additionally, taking
into account the transport sector's high dependence on oil in the
EU countries, one of the objectives of the 2009/28/EC Directive onthe promotion of the use of energy from renewable sources
adopted by the European Parliament and of the Council of Min-
isters in 2009 is to achieve a quota of at least 10% biofuels in thetotal gasoline and diesel consumed by 2020 [57].
According to the Directive mentioned above, the development
of renewable energy sources represents one of the main objectives
of EU energy policy. Given the consequences of climate change, the
increased dependence on fossil fuels and increasingly higherenergy prices, the directive speci fies that the share of renewable
energy in total consumption should reach the target of 20% by
2020 [58].
In order to meet their national targets for 2020 regarding the
renewable energy share in different fields of consumption such as
electricity, transport, heating, cooling, the member states are
obliged to adopt national action plans, set support schemes and
closer cooperation agreements with third countries. Other aspectsof the EU countries commitment involve exchanging energy from
renewable sources and cooperation on renewable electricity pro-
jects. Cooperation on renewable energy development projects
contributes to the transfer of technological know-how [59] and
strengthens economic and political relationship between EUcountries. Additionally, the countries are obliged to meet certain
requirements regarding the electricity consumption, the plant
which generates electricity and the support provided by a thirdcountry [60].
Renewable energy can also play a major role in reducing pov-
erty and stimulating rural development [61]. In developing coun-
tries where the energy infrastructure does not exist, renewable
energy could be a much cheaper and reliable alternative for elec-trification of villages, ensuring inhabitants' needs for electricity as
well as heating [23]. The installation of renewable energy plants
may offer many new jobs, contributing to economic growth ofdisadvantaged areas [62].
2. Literature review
Since 1997, when EU's renewable energy policy started, the
European states have introduced a series of measures to improve
the development of energy from renewable sources. As a result ofthe implemented policies, at the end of 2013, the primary pro-
duction of renewable energy reached 24.3% share of total primary
energy production from all sources [13]. The performance
obtained by each state ( Table 1 )r eflects very different natural
endowments and climatic conditions.The literature regarding the comparative development of RES
in Europe is concerned with measuring renewable energy pro-duction, consumption and potential as well as analyzing the
country attractiveness as regards renewables.
Since 1998, Eurobserver barometers have highlighted the pro-
gress of each Member State of the European Union in the field of
renewable energy. The Barometers have shown data regarding
solar thermal, solar power, photovoltaic, solid biomass, heat
pumps as well as biofuels. Comparative analyses regarding elec-tricity production from renewables and heat consumption in themember states of the European Union have also been presented[63]. The elaboration of these barometers has involved the col-
lection of data and information obtained from surveys and EU
reports and guides on renewable energy sources as well as cal-culation and comparative analysis methods. The EurobserverBarometers have generated a range of annual indicators coveringeach renewable energy sector. These indicators have been ana-
lysed in order to give the main trends regarding the development
of renewable energy field in the EU member states as well as to see
the progress made by each country in order to achieve the Europe2020 target. The Barometers have also provided policy indications,observations on national policy for renewables and rankings of
industry leaders which could help investors interested in this
sector.
Furthermore, the reports developed by IRENA has provided an
overview of 26 countries in the world regarding the share of
renewable energy 2010 –2013, the relation between country
renewables potentials and substitution costs from the governmentand business perspectives, the contribution of individual countriesto total renewable energy use, etc. [64,65]. They have been based
on data collected from of ficial government sources, with the aid of
national experts from 42 countries. Information about renewable
energy technologies, funding, policymakers' intentions, skills andcompetencies has been also mentioned. The studies have anTable 1
Primary production of renewable energy in 2013 (1000 tonnesof oil equivalent).Source :http://ec.europa.eu/eurostat/tgm/table.do?
tab¼table&init ¼1&plugin ¼1&language ¼en&pcode ¼ten00081.
Country Primary production
Belgium 2929
Bulgaria 1826Czech Republic 3640Denmark 3240
Germany 33,680
Estonia 1122Ireland 766Greece 2487Spain 17,377France 23,073Croatia 1499Italy 23,500
Cyprus 109
Latvia 2137Lithuania 1288Luxembourg 107Hungary 2074Malta 10Netherlands 4294Austria 9466
Poland 8512
Portugal 5621Romania 5561Slovenia 1071Slovakia 1467Finland 9934Sweden 16,770
United Kingdom 8404M. Pacesila et al. / Renewable and Sustainable Energy Reviews 56 (2016) 156 –170 158

exploratory nature using analytical methods, and their results are
globally valid. Their purpose is to help policy makers better
understand the opportunities and challenges facing this area as
well as enable the citizens to easily obtain objective and trans-
parent information. The conclusions of these reports highlight that
renewable technologies represent the best option as regards the
cost – effectiveness analysis. Moreover the researches and inno-
vations in the field lead to the discovery of new method for costs'
reduction.
Worldwide production from renewable energy sources has also
been analyzed by experts from REN 21 (Renewable Energy Policy
Network for the 21st Century) providing countries rankings
regarding renewable energy production capacity, electricity and
heat generation from renewables [66]. The analysis has been made
using the following criteria: geothermal power capacity, hydro-
power global capacity, solar PV global capacity, solar water heating
collectors global capacity, wind power capacity, electricity gen-
eration from renewables, heating and cooling from modern
renewable technologies, etc. The reports elaborated by REN 21
have also given an insight into current renewable energy market
conditions, investments as well as research and development in
developing and industrial countries without giving policy recom-
mendations. Over 500 researchers, authors and contributors have
been involved in data collection. The information presented has
allowed policy makers, industry leaders, investors and civil society
sector to take relevant decisions in the field. The results obtained
point out that the economic issues have profoundly affected the
renewable energy sector. However, investments could generate
positive long-term effects.
A comprehensive comparison of the electricity generated from
wind, solar, geothermal, tidal and wave in the G20 countries has
been elaborated by Natural Resource Defence Council, U.S. Energy
Information Administration and Bloomberg New Energy Finance.A top of G20 countries that have consistently invested in renew-
able energy worldwide in 2011 has been made by Bloomberg New
Energy Finance [67,68]. As regards data collection, the calculation
of electrical power for 2011 has been performed using data from
Eurostat, the monthly reports of the International Energy Agency
as well as the statistics of China Electricity Council. For the period
2002 –2010 the information has consisted of data provided by the
Energy Information Administration and the International Energy
Statistics. These documents highlight that the share of electricity
from renewable energy sources has represented 80% of global
electricity generated from renewables in 2010 in the G20 coun-
tries. Therefore, it is important for researchers and policymakers to
know these statistics, because this group of countries represents a
key element in determining and comparing the trends in the
electricity generated from renewables at global level.
A classi fication of countries according to the level of renewable
energy market development and their attractiveness in terms of
investment has been quarterly developed by experts from Ernst &
Young. They have analyzed the 40 most attractive countries in the
world and have create a preference ranking of the world countries
depending on the different types of renewable energy sources
[69]. The evaluation of the 40 countries has been made according
to the following criteria: growth potential of the renewable energy
market, energy infrastructure, quality of resources, legislation etc.
The annual analyses generate scores and ranking taking into
account the criteria mentioned above. The rankings and scores are
elaborated using data from publicly available databases or pur-
chased databases. Studies conducted by Ernst & Young experts and
adjustments to data collected from third parties are also used. The
information is quarterly or annually updated. The results indicate
the growing importance of emerging markets and the increasing
pressures regarding investments in renewable energy sector in
developing countries. The analyses draw attention to the wrongrenewable energy policies and provide information to investors
about the policymakers' measures in the field.
3. Research methodology
The paper's main objective was to analyze the renewable
energy sector in the countries of the European Union. The first step
of the research was to generate clusters of countries based on the
share of renewables in total energy produced in each country and
the country energy dependence. To our knowledge, there is no
evidence in the literature on grouping EU member states accord-
ing to the above criteria. To generate the clusters we have used the
k-means clustering method. According to Jain [70], k-means clus-
tering is one of the most popular and effective methods, which
involves an iterative distance-based clustering algorithm [71,
72].
This method has been successfully used in the last half-century by
many researchers in different domains [72], but almost never in a
renewable energy study. The purpose of the method was to
identify the main categories of EU countries according to their
energy dependence and the contribution that renewable energy
can have for energy dependence reduction. Galluccio et al. [73]
specify that clustering consists of partitioning a data set into
groups of points that have high similarity. In our case the simi-
larity means that EU member countries belonging to a cluster have
similar features in the renewable energy field, with close rates of
national energy dependence. The data for the share of renewables
in total energy produced in each country and the country energy
dependence were obtained from EUROSTAT ( Fig. 1 ).
The application of k-means clustering algorithm using SPSS
package generated three groups of countries: ( Fig. 2 ):
●1st group: Sweden, Denmark, Romania, Estonia and Czech
Republic. These countries have registered energy dependence
rates less than 30%.
●2nd group: Austria, Latvia, Finland, Slovenia, France, Germany,
Croatia, Bulgaria, Greece, Poland, Slovakia, Hungary, Nether-
lands, United Kingdom. These countries have registered energy
dependence rates between 30% and 70%.
●3rd group: Portugal, Lithuania, Italy, Spain, Ireland, Belgium,
Cyprus, Malta, Luxembourg. These countries have registered
energy dependence rates higher than 70%.
In the first cluster Sweden has an interesting position in rela-
tion to other states. Although it has a high share of renewable
energy production of 50.97%, there is still a rate dependence of
28.70% regarding energy imports. In exchange, Denmark, with a
smaller share of renewable energy (25.97%) in total energy pro-
duction, manage to cancel its energy dependence and even to
export 3.40% of energy produced at national level. Denmark is the
only EU Member State which achieves such a performance.
In the second cluster there is an interesting phenomenon of
states polarization depending on the share of renewable energy in
total energy production. Compared to other countries in the
cluster, which register much smaller share, Austria, Latvia and
Finland have higher share of renewable energy (between 32.09%
and 35.76%).
Lithuania and Portugal are far from the other EU states from the
third cluster, with shares of renewable energy of over 20% in total
energy production. It should be also noted that small countries like
Malta and Luxembourg have an unfavourable position both
regarding the very small share of renewable energy (up to 3.13%)
and the categorical energy dependence (about 100%).
The next step of the study aimed to order the EU member states
according to the following criteria: RES share, RES-E share
(renewable energy sources for electricity), RES-H&C shareM. Pacesila et al. / Renewable and Sustainable Energy Reviews 56 (2016) 156 –170 159

(renewables for heating and cooling) and RES-T share (renewables
in the transport sector). To achieve this goal we have used amethodology based upon the Borda count method.The aim of the Borda method is to make the process of decision
making easier, by ordering many options in conformity with theirranking sums [74]. According to Lumini and Nanni [75], theFig. 1. Renewables data by country.
Sources :http://epp.eurostat.ec.europa.eu/tgm/table.do?tab ¼table&init ¼1&plugin ¼1&language ¼en&pcode ¼tsdcc310;http://ec.europa.eu/eurostat/web/energy/data/
shares;http://epp.eurostat.ec.europa.eu/portal/page/portal/energy/documents/SHARES2012results.xlsx .
SwedenAustria
DenmarkLatvia
Finland
RomaniaPortugal
SloveniaLithuania
FranceItaly
EstoniaGermany
CroatiaSpain
Czech RepublicGreece
PolandSlovakiaIreland
HungaryBelgium
NetherlandsCyprus
United KingdomMalta
BulgariaLuxembourg
-15%5%25%45%65%85%105%
0% 10% 20% 30% 40% 50% 60%Energy dependence (%)
RES share (%)CLUSTER CLUSTER 3
CLUSTER 2
1
Fig. 2. Countries grouped in clusters.M. Pacesila et al. / Renewable and Sustainable Energy Reviews 56 (2016) 156 –170 160

method has the advantages of being easy to apply in any field and
of requiring no specialized training. At the opposite pole, Doganand Giritligil [76] highlight the problems encountered in its use.
The strengths and weakness of this method are also point out byLapresta and Panero [77] from a procedural and epistemic point of
view. Furthermore, Saari [78–80] includes this method in the
category of the safest scoring methods as regards the occurrenceof errors or paradoxes. As regards our paper, the method could becriticized due to the equal treatment applied to all the countries,which are classi fied regardless of their characteristics, such as
technology capacity or renewable energy potential.
The review of literature revealed a lack of speci fic studies
regarding the application of Borda method in the field of renew-
able energies. Therefore, the present study could be considered astarting point for further researches. In this paper we have usedthe classic Borda method to realize a unique ranking based on theglobal RES share, but in the same time based on the share on RES-E, RES-H&C and RES-T in each country. The values for RES share,RES-E, RES-H&C and RES-T were obtained from EUROSTAT ( Fig. 2 )
(the last available data were from 2012).
After ranking the EU states in accordance with the criteria set
above, the Borda score has been calculated for each state ( Fig. 3 ).Finally, the countries were ranked in decreasing order based on
Borda scores ( Fig. 1 ).
4. Results and discussions
In each cluster, the countries were ranked based on the Borda
score obtained. In the following we highlight the main features of
the renewable energy policy in each member state.
4.1. The state of renewable energy in the countries of the first cluster
According to the ranking, Sweden is leading the way in the
European Union. The good natural conditions such as precipita-
tions, distribution of precipitations during the year and in flow
allowed the development of hydro-power plants and increased
renewable electricity production. In addition, Sweden is char-
acterized by one of the highest proportion of land covered by
forest, namely 53% of land cover, while the global average is 30%.
Therefore, about 85% of bioenergy is provided by this sector [81].
The widespread use of biomass and heat pumps allowed that
the district heating and cooling became free from fossil fuels.Fig. 3. Borda scores.M. Pacesila et al. / Renewable and Sustainable Energy Reviews 56 (2016) 156 –170 161

Moreover, as regards machines and equipment for transportation,
Sweden has the intention of becoming fossil fuels independent by
2030 [82]. Therefore, the country has intensively promoted the
benefits of using green vehicles and provided facilities for biofuels
consumers. Due to the incentives to support renewables (quota
system, tax regulation mechanisms, subsidy schemes, tax
exemptions) and to the requirement to purchase green electricity,
a growing number of companies invested in renewable energy.
These are complemented by research programmes aiming for cost-
effective solutions supported by government.
Renewable energy generation has had a major role in Den-
mark 'senergy policy providing an increase in the diversity of
sources of potential supply and reducing greenhouse gas emis-
sions [83]. Denmark has a well-developed renewable energy sec-
tor, although it is almost completely devoid of hydropower
resources. The total contribution of renewable energy to all energy
consumption was 23.6% in 2011 [84]. Since 1970 the policy in the
field has greatly boosted wind power installations and related
investments placing the country among the world leaders in terms
of installed wind power per capita [85,86]. The renewable share in
the country's domestic electricity mix is high, the contribution of
wind energy accounting for 28.2% in 2011. In addition, biomass,
solar, hydropower, geothermal, tides, and biofuels also contribute
to electricity generated from renewable sources [87]. The district
heating and combined heat and power plants plays a signi ficant
role in the supply of heat for 60% of households, biomass having
the highest contribution [88]. The heating system developed due
to a long range planning and to the need to conserve energy felt
more than ever after the oil shocks in 1970s [89]. The use of bio-
fuels technologies have not recorded signi ficant progress in recent
years and despite all the publicity that had been made by the
media, the advantages of using biofuels are not generally known to
the public [90]. In order to increase the share of renewables in
overall electricity consumption, the Danish government has
introduced a premium tariff and net-metering. Other incentives,
such as loan guarantees and subsidies are also offered by the
authorities in order to encourage the building of wind power
plants and the installation of small -scale renewable energy sys-
tems. The renewable heating and cooling sector is supported
through a combination of instruments: tax exemptions, an obli-
gation to use renewable heating and cooling systems in new
constructions or renovated living spaces and a direct premium
tariff for the sustainable use of the biogas technology. The use of
biofuels or other renewable fuels for transport is currently pro-
moted through a quota system.
The activities relating to harnessing renewable energy sources
have become an important component of the Romanian energy policy
since the start of the new millennium, amid EU accession [91].W h e n
excluding large scale hydropower, renewable energy potential
includes biomass and biogas (65% ), wind (17%), solar (12%), small
hydro (4%) and geothermal (1%) [92]. Hydro-energy has the largest
share in electricity production. Most of the electricity is generated in
large scale hydropower because the high potential for small scale
hydropower is not harnessed [93]. Wind energy and wind power
technologies have been installed in recent years in order to produce
electricity. The forest surface represents 27% of the land territory in
Romania [94] which means that biomass has great potential in the
country. However, only 36% of this potential is used, mainly for
household purposes (direct burning, cooking ,water heating and
space heating needs) and to a lesser extent for industrial purposes
[92]. In spite of the stimulus measures launched by the Romanian
state which have generated high interest in investments, the pro-
duction of biofuels is not high [95]. However, new biofuels production
plants are built in order to meet population demand [96].T op r o m o t e
the production of electricity from renewable energy sources, Romania
adopted a compulsory quota system based on green certi ficates.Moreover, the heating and electricity sector receive subsidies and the
use of renewable energy technologies in all new developments andconstructions with a total surface area more than 1000 m
2is
encouraged. Subsidies are also given to modernize the local district
heating system with investments aimed at increased energy ef fi-
ciency. In addition, a quota system for biofuels is in place in thetransport sector fuel [97].
The Estonian economy depends to a large extent (74%) on non-
renewable sources. Biomass, wind and hydro-energy account for
the remaining 25.9% in 2011 [98], while solar and geothermal
production is not signi ficant. Wind energy plays an important role
in the renewable energy production due to its geographical posi-
tion, the country being close to the Baltic Sea. As regards hydro-
energy, the environment conditions do not allow the constructionof large hydropower plants. Instead, there are many small hydro
stations throughout the country [99]. Although the share of
renewables in total electricity production is low, the percentage isgrowing: 13% of the electricity produced in 2011 had come from
renewables, such as wind, hydro and biomass [98]. Over 50% of
Estonia's territory is covered with forests [100] and a variety of
firewood products are used for heating. Moreover, biomass
represents the most important source for the heating and cooling
sector and the share of renewables in this field is high [101] .
Estonia is not positive about reaching the goal of 5.75% of
renewables in transport by 2020. In 2009 biofuels provide only
0.26% of total road transport fuel nationally. Crops for biofuelproduction are limited because of the small cultivated land surface
and the need for chemical fertilizers [102] . The incentive
mechanism plays a signi ficant role in the evolution of renewable
sources. The main support instrument for renewable electricity is a
premium tariff. In addition, technology investment support pro-
grammes get underway in order to ensure the sector ’s develop-
ment. As regards heating and cooling, investment subsidies are
provided for the building of cogeneration plants or to private
consumers. There are no measures regarding the use of biofuels orother renewable fuels in transport. A support instrument was
introduced in order to support the acquision of electric cars.
The Czech Republic has a range of high quality renewable energy
resources. Overall, a third of the country's territory is under forest
cover [103] , biomass being the traditional solid fuel used in
apartments heating system. Hydropower is the second largestsource of renewable energy followed by wind energy. Although
the country made progress in the last few years due to invest-
ments in the solar photovoltaic energy [104] , the share of
renewable in total electricity mix is low. The other important
contributors are biomass and small and large scale hydropower
plants. Wind energy has a limited contribution because of thereduced installed capacity. Heat from renewables is produced
mainly through the use of biomass, solar thermal and geothermal
systems. The production is low because of the early-market andunderdeveloped technologies [105] . The country has failed to
make progress regarding the use of renewables in transport [106]
although biofuel production had grown by 19.8% during 2006 –
2010 [107] . The dissemination of renewable alternative energy
sources for electricity generation is done through a guaranteed
feed-in tariff or a green bonus and subsidies. Subsidies and taxexemption for heating plants as well as a mandatory stipulation to
use renewable heating in buildings stimulate the generation of
heat from renewables. The legislation allows consumption taxexemption for biofuels and imposes a quota system for renewable
fuels incorporation in transport.M. Pacesila et al. / Renewable and Sustainable Energy Reviews 56 (2016) 156 –170 162

4.2. The state of renewable energy in the countries of the second
cluster
The good conditions regarding rainfall and its distribution over
the year contribute greatly to electricity production, large hydro-
power being the main source of generating electricity from
renewables in Austria . However, the most important renewable
energy source is biomass, hydropower ranking second. A high
percentage, namely 47% of the country's land surface, is covered by
forests, the woodland having one of the highest shares on the
European continent [86]. Therefore, wood and other types of
biomass are widely used in combined heat and power plants and
district heating plants, as well as in household heating systems. In
addition, since 2005 Austria adopted a series of measures to
introduce biofuels and bioethanol in the transport sector in order
to replace gasoline or diesel fuels. Consequently, the target set by
the Biofuels Directive (2003/30/EC) will be accomplished earlier
[108] . In fact, the country is aware that the use of instruments for
promoting renewables plays a crucial role. Therefore, it uses a mix
of such instruments (feed in tariff, an incentive scheme for heating
and cooling from renewables, a quota system in the transport
system and a fiscal regulation mechanism for biofuels) and con-
nect them with other political instruments like subsidies for the
construction of PV installations on buildings as well as a building
obligation for the use of renewable heating. Moreover, the
reduction of dependency on imported fossil fuels and of green-
house gases represents an important driving force towards the use
of renewables.
The objectives set by the Sustainable Development Strategy of
Latvia until 2030 regarding the use of renewables and the reduc-
tion of dependency on energy imports had an important role in
increasing the share of renewable energy in total consumption.
The wood as well as hydroelectric power generation has a greatcontribution to this growth because these resources are the most
widely used in the country. Electricity is produced mainly by large
scale hydropower plants. In addition, there are small scale
hydroelectric generating plants and onshore wind farms that have
greatly developed in recent years. 45% of the Latvian territory is
covered by forests and other wooded areas [109] . Therefore, the
country lays great emphasis on use of biomass energy production
used both in combined heat and power plants and in individual
house heating systems [82]. With regards to transport sector, the
biofuels share is growing and their production increased twice
over the past two years [110] . The emphasis on sustainable biofuel
production could be explained by two bioethanol plants, five
biodiesel plants and seven rapeseed oil plants as well as the future
construction of six new biofuel plants [86]. The obligations arising
out of its EU membership, the international obligations and the
reduction of non-renewable energy sources have decisively in flu-
enced the Latvian renewable energy policies. Latvia uses a com-
bination of different instruments for the promotion of renewable
energies such as feed in tariff for renewable electricity generation,
tax bene fits for heating and cooling and a tax regulation
mechanism in the transport system.
Climate change caused by greenhouse gas emissions and gov-
ernment support give renewable energy production an opportu-
nity for growth in Finland . Although it is one of the top leaders on
the European continent regarding the use of renewable energy, the
country has the intention to increase its share in total consump-
tion [111] . Biomass and hydropower are the most important
sources of energy. Finland has the most forested land in Europe,
86% of its territory being covered by forests [112] . Biomass is
widely used to produce electricity and for heating purposes.
Hydropower is the second most important renewable energy
resource. Its contribution to electricity production varies depend-
ing on rainfall and other hydrological conditions. At global levelthe country represents a good example in using combined heat
and power systems as well as district heating and cooling tech-
nologies operating at high ef ficiency [113] . Biofuels do not account
for a large share in the transport sector. However, the future
requirements regarding the use of biofuels in transport have
increased the country's interest in producing a larger quantity ofthem [114] . Finland's energy taxation and subsidies provided for
renewables stimulate the development of investments in elec-
tricity as well as in heating and cooling sector. Market support for
renewable electricity consists of feed in tariff for electricity pro-
duced from wind, biomass and biogas. Heat produced with
renewable energy sources is promoted through a coordinated and
tailored mechanism, “heat bonus ”, applied to combined heat and
power plants using biogas and wood fuel [97]. As regards district
heating companies, they conduct their operations in accordance
with the laws and under the control of authorities. The use of
renewables in the transport sector is supported by a quota system
and tax regulation. The researches and innovation in the field are
supported by the government.
InSlovenia wood biomass and hydro resources provide over
90% of available energy generated from renewables. Forests occupy
about 60% of the country surface. That is why wood ranks first in
scoring providing an endlessly renewable supply of materials
[115] . Currently wood biomass systems are largely used for heating
and less for electricity production. Hydroelectric power accounts
for the largest share of electricity generation from renewables
although it depends on weather conditions leading to rainy or dry
periods [116] . According to Invest Slovenia [117] in 2010 large and
small hydropower plants have generated 95% of the electricity
production while biomass have contributed over 2%, biogas 1% and
other sources such as photovoltaic and industrial waste have
produced only 2%. The share of renewables represents about 27%
in the heating and cooling sector due to the policy measures takenby the authorities and the financial support programmes
encouraging the use of biomass for renewable heat in households,
tertiary sector and industrial applications [118] . Taking into
account the unfavourable geographic conditions for crops devel-
opment, the production of biofuels is at low level. According to the
European Commission Report [106] Slovenia failed to meet its
obligations assumed in the National Renewable Energy Action Plan
on increasing the share of renewables in public transport. The
market development of renewable energy technologies, especially
for electricity generation is supported through a feed-in tariff and
a premium tariff as well as subsidies and loans. Loans and sub-
sidies were also introduced by the Slovenian government in order
to facilitate the development of ef ficient heating and cooling
technologies. The most important supporting schemes used in
transport are a quota system and a tax regulation mechanism.
France lays great emphasis on renewable energy research and
development. The forest territories of France occupy 25% of the
area of the country [119] . Therefore, biomass is potentially the
most important renewable energy source, followed by hydro-
power. Compared to other EU countries, France is neither
advanced nor less developed regarding the renewable electricity
production. In this field, the country focused on developing wind
energy, installing solar panel and on cogeneration [120] . The
renewable heating sector enjoyed an increase of 22% during 2007 –
2012, but the growth was not enough to cover the domestic
demand for energy. The major contribution in the field belongs to
biomass, solar, heat pump and geothermal [121] . In recent years
the production of biofuels has been affected by rising commodity
prices as well as the global crisis [122] . In addition, the costs of
biofuels production are two to three times higher than those of
conventional fuels [123] . A feed-in tariff and tax bene fi
ts promote
renewable power generation. Subsidies, taxes for regulatory pur-
poses and interest free loans are in place for heat produced withM. Pacesila et al. / Renewable and Sustainable Energy Reviews 56 (2016) 156 –170 163

renewable energy. Several policies related to renewable energy
heating have been established: certi fication mechanisms for solar
and geothermal technologies, research programmes, a mandatory
requirement regarding the contribution of renewable to building
heating and support schemes to ensure the development of
heating infrastructures. A quota system and fiscal regulation
encourage biofuel incorporation in transport.
The renewable energy sector in Germany has recorded sig-
nificant growth in recent years, its share in the primary energy
demand being 11.7% in 2013 compared to 1.3% in 1990 [124] . Ernst
& Young's [125] report on renewable energy country attractiveness
indices mentions that Germany ranks second in the world after
China. Wind, solar and biomass have grown strongly over the past
ten years, and therefore hydropower and geothermal have lost
their leading positions. According to Norton Rose Fulbright [103]
significant changes occurred in 2011. This was the first year in
which the share of electricity from renewable sources was higher
(20%) than nuclear power. Germany has the largest wind installed
capacity on the continent [126] . In 2011 8.1% of the electricity
production was via wind energy and 3.2% via solar energy [127] .I n
addition, the country has one of the highest densities of forests
among the countries of the European continent. One third of its
territory consists of forested land [128] , biomass becoming
increasingly used for heating house and building apartments.
However, the energy consumption within the heating sector
represents over half of the country's energy production, and the
share of renewable energy is small [129] . Germany holds the
leading position in Europe in terms of biodiesel production, which
accounted for 28% of total EU production in 2009. As regards
biofuels, the country fared well in recent years in terms of
achieving the 10% target for the transport by 2020 [130] . Germany
has introduced a raft of incentives mechanisms to promote
renewable energy sources: a feed in tariff and low interest loansfor investments in new power plants, as well as several pro-
grammes for the development of the heating and cooling sector.
There are also two major instruments employed by the govern-
ment to stimulate the use of renewables in transport: quota sys-
tem and fiscal regulation.
Croatia is distinguished by a high potential of renewable energy
sources, especially biomass, wind and solar energy. The country
has used only hydropower until 2004 when it has started to
promote the widespread use of renewable energy [131] . Therefore,
electricity production from renewable sources increased from
32.5% to 38.7% during the period 2004 –2013 [132] . As regards the
share of renewables in the heating and cooling sector, an increase
of 8% was also recorded, reaching 18.3% in 2012 [133] . The con-
sumption and production of biofuels is low. However, since 2007
the capital of the country, Zagreb, has started to use biodiesel in
public transport [131] . Croatia does not give much emphasis to
mechanism for supporting renewables. Only two instruments are
used in order to stimulate electricity generation: feed-in tariff and
loans. The government does not provide support schemes for
heating and cooling as well as for transport sector [134] . However,
the Energy Development Strategy elaborated by the Croatian
government in 2009 sets targets for increasing the use of renew-
ables in the sectors mentioned above.
Bulgaria has a signi ficant renewable potential, especially in
term of biomass, the forests covering about 33.6% of the country's
total land area [135] . Hydroenergy is another important renewable
energy source, mainly used for electricity generation. Furthermore,
wind, solar and biomass are currently the most dynamically
developing renewables [136] . Renewable energy share in total
electricity consumption is not high because the field is not yet
sufficiently developed. Wind, small hydro, solar PV and biomass
are the contributors of this sector. The heating and cooling sector
provides the highest contribution among all renewable energysectors to meet Bulgaria's energy needs. This includes the use of
solar thermal, biomass and geothermal. However, the financial
support is limited compared to development needs [137] . Biofuels
market and industry are not well developed due to unfavourable
conditions existing until a few years ago. Moreover, quality pro-
blems caused by the processing technologies have been reported
[138] . The country uses a set of financial incentives to stimulate
renewable energy production: a feed-in tariff designed to accel-
erate investment in renewable electricity technologies, a subsidy, a
property tax exemption for buildings and loan programmes for
heating and cooling purposes, a quota system and a fiscal and
regulatory instrument for the development and use of biofuels in
the transport sector.
Greece has an abundance of renewable resources that can be
used to produce energy in order to revive the country's battered
economy and create jobs [139] . Hydropower is the main renewable
source, followed by wind and solar energy whose production
capacity increased over the past years [86]. Renewables started to
play an important role in the electricity generation in the early
90s. Electricity production from renewables had a positive trend in
the last five years, because it has increased twice [140] . There are
several distinct renewable sources of energy used for heat gen-
eration: solar thermal, geothermal as well as heat pumps, biomass
and biogas. However, the financial support and legislation do not
spur the full exploitation of their potential. Moreover, renewable
cooling development is in its infancy and despite favourable cli-
matic conditions, investments in solar cooling are limited because
of high costs [141] . Biofuels production is affected by the semi-arid
climatic conditions [142] , and the support schemes used in the
field do not provide a high degree of safety and security to
investors. However, energy crops have enjoyed a gradual growth
in recent years and the country has invested in biodiesel produc-
tion capacity [143] . The main support mechanisms for developing
renewables are: a feed-in tariff, subsidies, a tax exemption and a
net metering scheme for electricity, a tax exemption and a subsidy
programme for heating technologies as well as a quota system as
the most important incentive for renewable energy use in
transport.
Taking into account the need to reduce greenhouse gas emis-
sions, investing in renewable energy resources is considered a
priority in Poland . Hydropower has traditionally been important in
the country. The second largest resource is biomass, tree forests
covering approximately 30% percent of the country's surface
[144 ,86]. The renewables are not widely used for electricity gen-
eration, which makes it dif ficult to cover growing demand in the
country. The renewable heat market is less developed, because of
limited resources or underdeveloped technologies. Renewable
heat is produced from solar energy, heat pumps, geothermal
energy, biogas and fired or co- fired biomass [145] . Biofuel pro-
duction and consumption recorded signi ficant growth over the
past years due to increased attention and investments directed to
this sector [102] . The renewable electricity support schemes cur-
rently in place in Poland are a quota system and tax relief. Two
subsidy instruments aim to encourage the heating sector devel-
opment and a quota for biofuels is compulsory in transport.
Slovakia has access to a range of high quality, abundant
renewable energy sources: hydro-energy, biomass, solar, wind and
geothermal energy. Large-scale hydro-power is currently the main
source of renewable energy [86]. Slovakia is a country of great
forest cover, 40% of its territory being occupied by forests. There-
fore, the country has huge potential for biomass, which could
replace the use of fossil fuels in the heating sector. Renewable
electricity accounts for almost a fifth of production and it is gen-
erated from different sources: hydro-energy, biomass and waste,
solar, ride, wave and wind [146] . However, the generation of
electricity from renewables faces several challenges related to theM. Pacesila et al. / Renewable and Sustainable Energy Reviews 56 (2016) 156 –170 164

high cost of technology, wind and solar power variability and the
negative effects on the environment. Heating and cooling provide
a growing portion of the country ’s overall renewable energy.
However, the financial aid for this sector is not consistent and
geothermal technologies are underdeveloped compared to the
potential of this resource. Little attention has been paid to the
exploitation of biofuels potential in recent years [105] . The
mechanisms fostering the use of electricity from renewable energy
sources are a feed-in tariff, an exemption from excise tax and
subsidy programmes. Investment schemes and mandatory
requirements for integrating renewable heating technologies in
living spaces are fundamental in stimulating the renewable heat
sector. A quota system and a tax regulation mechanism allow
renewable fuels incorporation in transport in order to achieve the
EU target.
Hungary focuses on developing and harnessing renewables for
the bene fit of the population. The proportion of forest area of total
land area is 21.5% [135] , biomass being the main renewable source
for electricity as well as heat generation. Geographical conditions
are also favourable to solar energy [147] . The share of the country ’s
electricity generation coming from renewable is one of the lowest
among the Member States because of the decreased hydropower
potential, the reduced installed wind capacity and the lack of
investment in biomass power plants. Although renewable heating
contributes most to energy generation in the country, its share is
low because biomass is not suf ficiently exploited and geothermal
systems are in their infancy [105] . Biofuels market continues to
grow due to investments made over the past years and increased
cultivation [148] . A feed-in-tariff and subsidy schemes incentivise
the generation of electricity from renewable sources. Subsidies, a
requirement of introducing renewable energy in new construc-
tions and financial aid for improving energy ef ficiency in public
institutions contribute to the development of the renewableheating sector. A quota system and a reimbursement of excise duty
encourage the introduction of biofuels in the mix of commercial
fuels used in transportation.
Netherlands is developing policies aimed at a more diversi fied
mix increasing wind energy, biomass and other types of renew-
ables. Geographical conditions in the country are favourable for
renewable energy sources development, especially wind and bio-
mass, followed by hydro-energy, solar and geothermal energy
[105 ,149] . The renewable energy sources do not have an increased
share in the generation portfolio. Onshore and offshore wind
energy as well as biomass are currently the dominating renew-
ables for power supply. The renewable heating sector is not well
developed, although several resources are used for heat produc-
tion: biomass, biogas, solar thermal and geothermal heat pumps
[105] . Although the energy crops for biofuel production are not
significantly pro fitable for the agricultural producers, the share of
renewables in fuel consumption of transport has been around 4%
in recent years due to imports [150] . The electricity generated
from renewables is promoted through a price regulation system
based on premium scheme, subsidies for photovoltaic system
investments, net-metering and tax bene fits. A premium tariff, tax
benefits and heating infrastructure tax credits continue to be
instrumental in the delivery and growth of renewable heat. The
tax credits for biofuel and hydrogen and an obligation scheme
contribute substantially to the task of integrating renewable fuels
into the country's transportation fuel portfolio.
Developing renewable energy is a major part of
United King-
dom ’spolicy objectives [86]. The renewable energy comes from
wind, waves, tides, biomass, hydro, solar and geothermal energy
[151] . Although the interest in renewable energy has grown over
the past few years due to EU targets for reducing greenhouse gas
emissions, the electricity market from renewables is not well
developed. Currently a low share of energy comes from renewablesources (biomass and waste) in the heating and cooling sector
[152] . According to surveys by the Global Subsidies Initiative, the
production of biofuels does not rise to the level of installed
capacity. That is why the British government aims to identify the
best solutions to increase the share of renewable energy in
transport, taking into account the growing cultivated land area
[153] . The existing support mechanisms for the electricity pro-
duced from renewable energy technologies are a feed-in tariff
scheme, a quota incentive system and a tax regulation mechanism.
Thefinancial incentives to increase the generation of heat from
renewable consist of a subsidy programme and a price-based
mechanism. A quota system is in place in order to ensure the
introduction of biofuels in transport.
4.3. The state of renewable energy in the countries of the third
cluster
Characterized by high dependence on oil and gas imports,
Portugal has made great efforts to develop renewable energy
sources. It enjoys favourable conditions for the development and
use of renewable energy sources: high waves, tidal and hydro-
power resources as well as strong winds and high flux of solar
energy. Hydro energy dominates the current electricity market but
the annual generation varies considerably depending on dry or
rainy periods. In the last decade progress has been made in the
field of wind energy, currently generating almost 20% of Portugal's
electricity [154] . In fact, Portugal is one of the most advanced
countries in Europe regarding the construction of new wind farms,
a large number of them getting building approval in recent years
[155] . In what regards the heating and cooling sector, the share of
renewable energy is high due to the development of solar thermal,
PV in buildings and geothermal heating [156] . Despite the few
measures to promote agricultural initiatives and the tax exemp-tions for the use of biofuels in road transport, bioethanol is not
produced in Portugal. However, there are seven biodiesel plants,
but production has been mostly affected by lower sales, effect of
the economic downturn [102] . The Portuguese renewable policy
framework is represented by a comprehensive range of instru-
ments and measures. The government promotes renewables
through a feed in tariff for the electricity sector, a biofuel quota
system and a tax exemption to small producers in the transport
sector. As regards the policy in the building sector, the Portuguese
code in this field stipulates an obligation for installing solar ther-
mal systems for sanitary hot water. In addition, the government
has run campaigns aiming to raise populations ’awareness of
issues affecting the renewable energy sources development and
has established a fund aimed at financing researches and inno-
vation programmes in the field.
The promotion of the use of energy from renewable sources is a
priority of the Lithuanian Government in order to achieve energy
independence lost in December 2009 due to a nuclear power plant
closure [102] . Therefore, the electricity production from renewable
sources is low because the former nuclear power had provided
70% of the country's electricity demand [84]. Currently the country
is aimed at unlocking the potential of biomass, hydropower and
wind. A third of the Lithuanian territory (32%) is covered with
different forests, 82% of total biomass originating from forests
[157] . Biomass is used both for electricity generation and supply of
heat. The share of biomass in electricity production accounted for
13% in 2010. However, biomass plays the most important role in
the heat energy sector accounting for 19% in 2010
[158] . Although
Lithuania is not rich in hydropower resources, hydro-energy ranks
second after biomass, contributing 3% of the total production of
primary energy in 2010 [159] . Wind technologies have recorded
the highest growth in the country. The electricity generated from
wind energy has been produced since 2002, accounting for 2% ofM. Pacesila et al. / Renewable and Sustainable Energy Reviews 56 (2016) 156 –170 165

total electricity generated in 2009 [84]. According to USDA Foreign
Agricultural Service [102] , renewable energy (biomass and geo-
thermal) is widely used in heating and cooling, as well as in dis-
trict heating. Despite the problems encountered in the past, the
biofuels industry is expected to register growth [160] due to the
high potential for growing biofuel crops [161] . The biofuel shares
for transportation purposes increased during recent years (4.3% in
2008, 5% in 2009) due to change in law [162] . The feed in tariff is
the main support mechanism used by the Lithuanian Government
to support renewable electricity generation. Moreover, the pro-
ducers may receive grants from special funds. Three support
mechanisms have also been set for the heating and cooling sector:
a priority purchase obligation for renewable heat, subsidies from
special funds and tax reliefs for preventing pollution. The use of
renewables in the transport field is supported through an excise
tax exemption and a tax relief for pollution.
Currently, Italy is focusing on increasing the use of renewable
energy in its territory in order to get rid of dependence on energy
imports. Hydro-energy is the most important source of renewable
energy, followed by solar, wind and geothermal [163] . Due to its
location on the Tyrrhenian and Adriatic Seas and in southern
Europe, the potential of solar and wind energy is high. The country
holds a leading position in Europe in terms of geothermal energy
production and it is the second largest market for solar PV
installation [164] . Despite the rapid spread of renewable technol-
ogies, the electricity production in the country remains dependent
on oil and gas [165] . Hydropower plants generate the largest share
of electricity from renewable energy sources, even if it depends on
climate fluctuations. Although the investments in solar thermal
system increased three times during 2007 –2010 [166] , the total
contribution of renewable energy to all energy consumption in the
heating and cooling is low. Special attention should be given to
cogeneration systems, which are considered long-term pro fitable
[167] . Despite persistently challenging economic and legislative
conditions, biofuels industry continues to develop and mature in
order to reach the renewable energy target for 2020. Moreover,
Italy is the fourth largest producer of biodiesel in Europe [102] .
Support mechanisms are open for all kind of renewable energy
users and investors. Based on the market conditions, the most
suitable instruments for electricity generation and investments
are: premium tariffs, feed-in tariffs, tender schemes and tax reg-
ulation mechanisms for investment in power plants. A variety of
financial support schemes have been put in place for heating and
cooling: a tax regulation system, loans and a price based
mechanism for new installations, loans for the development of
district heating infrastructure. The installation of renewables
technologies in new and renovated living spaces is mandatory. The
use of renewables in transport is mainly promoted through a
quota system.
Spain 'seconomy lays great emphasis on renewable energy
development by investing in the construction of hydroelectric
power stations, wind farms and solar plants [168] . Therefore, this
energy sector has expanded considerably [169] . However, the
electricity produced from hydro resources varies dramatically
depending on the amount of precipitation characterized by inter-
annual fluctuations. Until the 1990s hydro-energy had the largest
share of electricity generated, which was very different to the
current situation. Today, wind energy ranks first in the Spanish
electricity production accounting 18.1% of supply in 2012 and 21.1%
in 2013, followed by hydro-energy with a share of 7.7% in 2012 and
14.4% in 2013 [170] . Furthermore, among sources of renewable
energy, wind is considered the most sustainable in the country
[171] . In terms of installed capacity, solar photovoltaic and solar
thermal showed signi ficant increases in recent years [170] .
Moreover, the country is among the top wind energy producers in
the world due to technological development [86]. Renewableenergy penetration in the heating and cooling sector remains
limited because of bureaucratic constraints, although the Spanishgovernment was the first in Europe which required installation of
solar thermal panel on buildings [86]. As regard biofuels, Spain is
among the European leaders in terms of bioethanol and biodiesel
production, exporting a large amount of biofuels. However, it is
not among the top countries in terms of biofuels consumption
because of the existing legislation which allows the mixing of
biofuels with gasoline and diesel [170,172]. With regard to
incentive schemes, the country used a variety of them in order to
promote renewables: a price regulation system for electricity
generation (currently eliminated) [173] , a guaranteed feed-in tariff
or a guaranteed bonus (premium) for power plant operators
(currently suspended), a quota system and a tax regulation
mechanism for biofuels. The government does not provide support
schemes for the heating and cooling sector. However, the legisla-
tion requires the installation of solar thermal panels as part of new
constructions [174] .
Renewables have a rich potential in Ireland and the main
priority of the country is to fully exploit them. Wind energy
potential is huge and the capacity installed has recorded a sig-
nificant increase over the past decade [86]. Hydro-energy has been
exploited for many years. However, the energy produced by this
traditional resource varies due to the fluctuations in the country's
rainfall and other precipitation. Renewable energy deployment in
the electricity field has continued to increase in recent years. Wind
energy is currently the main source to generate electricity, fol-
lowed by hydro and biomass [175] . Renewable heat sector is not
given the attention it requires in Ireland. Due to low production of
renewable energy in the heating and cooling sector, the country is
not able to meet its EU target. Moreover, the investment costs of
biomass boiler technology are high [176] . Biofuel production has
undergone major changes due to rising commodity costs. How-
ever, some progress has been reported due to increases in crop
production and in manufacturing capacity [177] . Electricity gen-
eration from renewables is regulated by two mechanisms: a feed-
in-tariff and tax relief. As far as heating is concerned, a grant is
available to help households install thermal heating systems ,as
well as a tax return for enterprises purchasing new high-ef ficiency
heating or cooling system. A mandatory contribution of renewable
energy in new buildings is imposed. A quota system favours the
incorporation of biofuels in transport.
Currently Belgium has in view the development and adoption of
renewable energy-ef ficient technologies in order to meet its EU
target [178] . The largest renewable sources are hydropower and
biomass. In terms of overall forest area, the country has 21.8% of its
territory under forests. Moreover, wind and solar energy have
grown strongly in recent years [86,135] . The country is developing
renewable electricity sector aimed at a more diversi fied mix:
biomass and waste, wind, hydroenergy, solar, tide and wave [96].
However, the share of renewables in national electricity genera-
tion is low due to lack of investments and the strong presence of
fossil fuels and nuclear power [179] . The share of renewable in the
total national heating and cooling demand is low. However, the
country is planning to increase it through the use of biomass, heat
pumps and solar thermal energy [180] . Belgium is in its infancy in
terms of biofuel production [181] . Most of the current support
instruments for the growth in the renewable energy sector are set
at regional level. A quota -based certi ficate trading systems is
established for an ef ficient and effective increase in the amount of
electricity from renewable energy sources at national level. A tax
deduction is available to companies investing in the heating and
cooling sector. As regards the transport field, the country has a
mandatory blending requirement for biofuels linked with tax
regulations.M. Pacesila et al. / Renewable and Sustainable Energy Reviews 56 (2016) 156 –170 166

Cyprus focuses on the three available forms of renewables in
order to reduce dependence on imported energy and greenhouse
gas emissions. The Mediterranean and Semi-arid climate enable
the development of solar and wind energy [182] . 18.7% of the
country's total area is covered by forests [183] , biomass being the
third renewable source throughout the country. Currently, solar
energy, especially photovoltaic dominates power supply sup-
ported by renewable. However, electricity production from
renewables is low due to lack of funds, insuf ficient grid capacity
for wind energy and cumbersome requirements and procedures of
setting up renewable projects [105] . The heating and cooling is the
largest contributor to renewable energy production within the
country. In this sector solar energy ranks first, followed by biomass
and geothermal energy. Moreover, the country ranks first globally
in using solar energy to heat water. In addition, the authorities
have the intention to extend the cogeneration systems [105 ,184] .
Cyprus is lagging behind EU member states in terms of biofuels
consumption in transport due to the lack of interest from investors
in the sector [185] . The government measures aimed at supporting
electricity from renewables are subsidy programmes, a premium
tariff and a net metering scheme. Subsidies and grant schemes
have been essential in stimulating the renewable heat sector.
Grant aiming to optimize the use of renewable in transport is also
promoted by the authorities.
Malta aims to stimulate and develop the renewable energy
sector in order to ful fil its European and international commit-
ments. Solar and wind energy as well as biogas are the three
available forms of renewable energy sources throughout the
country. Malta is still the weakest EU Member States in terms of
renewable electricity production. It is lagging behind them both in
terms of research as in terms of application [186 ,187] . The share of
renewables in heating and cooling is low, the energy being pro-
vided only by solar thermal systems [105] . Malta depends almost
entirely on fossil fuels and cannot use agricultural land for pur-
poses other than food. In the future the authorities intend to
produce biodiesel from algae [102] . A range of incentive instru-
ments for renewable energy are currently applied across the
country: a feed-in tariff scheme and a subsidy programme for the
electricity produced by photovoltaic systems, subsidies for tech-
nologies for household-level solar water heating and tax relief for
the incorporation of renewable fuels in transport.
Government measures have been among the key drivers for
renewable energy development in Luxembourg . Forests cover
almost 33.5% of the land base [135] , biomass being the most
important renewable source followed by waste and hydropower
[188] . Renewables still make a modest contribution to the total
electricity production due to lack of investments. Even if hydro-
energy continues to dominate power generation, wind, photo-
voltaic, and biogas have begun to grow [99]. Biomass is the main
contributor to renewable heat in the country. However, its con-
tribution to the total heating and cooling is modest. Although
renewable energy potential is low in the country, the share of
renewable fuels in transport has increased in recent years due to
measures taken by the authorities [103] . The government have
instituted the following incentive mechanisms in order to develop
the renewable power sector: a feed-in tariff, subsidies and tax
benefit. Various subsidy schemes provide financial support for
renewable heat generation. The country has applied a quota sys-
tem to support the introduction of renewable fuels in the trans-port sector.
Each of the EU states analyzed in this paper has access to at
least one source of renewable energy, some countries being better
endowed than others. The Ukraine crisis and Europe's signi ficant
dependence on fossil fuels from Russia highlighted the necessity to
rethink the security energy policies and the importance of
renewable in diversi fication of the energy mix. Although the EUmember states have different ranking positions and different RES
share in the final energy production and consumption, imple-
menting ef ficient renewable policies should be a major objective of
policymakers. The measures to promote RES and the questions of
how national policies interact in the European frame are subjects
of controversial scienti fic and public debate.
Trying to respond to the question “What are the potential geo-
political implications of strongly increased market integration, the
large-scale transition to renewable energy, and supply diversi fication
for the making of European energy policy? ”,Scholten and Bosman
[189] identi fied two important categories of geopolitical imp-
lications:
/C15The uneven distribution of RES and the possibility of generation
energy domestically will shift the production of energy from
renewable sources to those countries that can exploit them
more cost-ef ficiently. Hence, one question which arises is
whether EU states should be concerned with the production
of renewable energy or leave this matter to others from which
they could purchase for less than the average price of their own
production [189] .
Countries which decide to invest in expanding renewable
energy capacity to cover a higher share of their consumption
will reduce their import bills for fossil fuels and will have the
power to be less dependent on external energy sources. Thus,
the position of a country in the RES ranking seems to be
determined by the possession of vast renewable sources and
by the capability to mobilize money to exploit them.
/C15The nature of renewable electricity transport implies a muchmore physically integrated infrastructure [189]
One problem of RES is the volatile source of energy, with
fluctuations in the electricity supply, which could cause grid
instability. To handle the technical challenges is needed animproved cross-border management and increased investments
in power transmission infrastructure. Increased penetration of
renewables generated a wider geographic spread, and theore-
tically, unfavourable conditions in one area can be compensated
by more favourable conditions in another. Even European Union
has made important steps towards integrating power markets,
the result is far from a fully ef ficient and harmonized market
[190] . An integrated energy market and cohesive energy sys-
tems across borders could generate economic and technological
benefits for all parts implied. Countries that provide cheap
balancing services could stimulate the economic activities and
attract new investments having an indirect in fluence over other
countries connected to the same power markets [191] .
From another point of view, renewables have become the main
alternative for off-grid applications. Beside the economical and
environmental advantages, the main impact of off-grid renewable
energy systems is on the quality of the people without access to
power systems [192] . The deployment of off-grid renewables is
hampered by many barriers, the main being the access to appro-
priate finance. Thus, each country should develop speci fic policies
andfinancial mechanisms to encourage local communities and
small businesses to use green sources of energy.
As innovative technologies are fundamental enablers for the
transition to low-carbon societies, renewable energy technologies play
an important role in transition towards a sustainable energy future.
Those countries who invest in dev eloping renewable technologies
may become the main geopolitical players in future [193] .
Since proper policies are driving forces of renewable develop-
ment, the less developed countries in the field of RES could learn
the best policy practice from successful countries to promote their
RES deployment. A common vision regarding the energy supply
will help each country to do the transition to renewables fasterM. Pacesila et al. / Renewable and Sustainable Energy Reviews 56 (2016) 156 –170 167

and more cheaply and will contribute to a better European Union
market [194] . This vision should be based on sustainability,
improving energy security, protecting the environment from thenegative impact of fossil fuel use and a joint response to climatechange. If Member States continue to apply different policies
regarding renewable energy share in national production and
consumption and stick with other forms of energy, this vision willbe without substance.
5. Conclusions
The analysis showed that national production of renewable
energy could help each state reduce energy dependence. However,
this should not be seen as the only factor in reducing energydependence. Moreover, the energy dependence of EU countries isnot determined solely by renewable energy production rate, butmay also depend on other economic, social and political factors:
economic development, size of the state, amount of national
energy consumption (domestic and industrial), energy ef ficiency,
national energy policy, geo-strategic position, foreign policy andenergy security etc. Studying the in fluence of these factors on the
EU member states' energy dependence could be the subject for
future researches.
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