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Foreword

Energy is the foundation stone of prosperity, security, and peace. Yet the European Union’s economicdependence on fossil fuels, of which the lion’s share is imported, is exposing the EU to threats fromclimate change, global geopolitics, and resource competition from rising economies. These risks couldundermine our industrial and social model and ultimately European stability itself.

In response to these challenges, the 27 member states of the European Union unanimously agreed in2007 to binding targets to change the basis of Europe’s energy supply. By 2020, the EU must reduce itsgreenhouse gas emissions by 20%—and by 30% when the conditions are right—and increase the share ofrenewable energy in energy demand to 20%. Energy efficiency must improve by one-fifth. These targetsare at the heart of the European Commission’s broad economic strategy for the year 2020, known asEurope 2020.

Meeting these targets not only is essential for the climate change challenge, but also will dramaticallyimprove security of supply by making the EU economy more efficient, decoupling growth from resourceuse, and creating more than 1.5 million extra jobs.The EU economy will be strengthened, with savings ofat least €60 billion ($81.6 billion) in decreased oil and gas imports, which can be invested in the domesticeconomy.

To do this, we must—within just a few years—generate more than one-third of our power fromrenewable sources of electricity. A significant part of our heating and transport must be based on renew-able fuels. It is not enough to tinker around the edges. We need huge, practical, and concrete initiativesinvolving society as a whole. And we need to persuade our international partners to follow the same track.

The benefits are easy to see: lower imports, new jobs, cleaner air, more stable international energymarkets and prices, lower energy bills, greater consumer empowerment. Renewable energy offers solu-tions to many of our problems—security, economic, and environmental.The switch to an economy witha large share of renewable and low-carbon sources is the only way to ensure sustainable economic growththat brings benefits to all parts of society.

Never before have businesses and consumers had to face such a daunting task. New energy sourcescall for new networks to bring them to customers. Intermittent generation requires new approaches tobalancing demand and supply. New and renewable technologies must become much more efficient andcommercially attractive. At the same time, we have to deal with economic uncertainty and growing globalcompetitiveness.

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It is unprecedented, even in a buoyant economy, for markets alone to make the types of investmentsand projects our system needs. The cost–benefit analysis for renewable energy is not simple for manyinvestors. In addition, today’s credit crunch risks undermining many advances industry has made in recentyears. We also have to face up to the adverse impact on investment and investment planning that couldensue from the weak Copenhagen climate agreement.

Moving to a low-carbon economy calls for investments in the order of billions of euros. But climateand security risks also have a cost, which could be several times higher.There is a growing consensus thatthe investments we make today will pay for themselves many times over in the future, in terms of cheaperenergy, greater energy security, new businesses and markets, a cleaner environment, and climate changemitigation. We cannot afford to miss out on the huge technology and employment opportunities andgeopolitical security of renewable power.

Our 2020 targets are a stepping-stone toward the EU vision for a decarbonized power supply andtransport sector by 2050. Let us not forget that the system we have in place today is largely a result oftechnologies and decisions from 40 years ago, or even more, so our 2050 timescale is not as ambitious asit sounds. It simply reflects the reality of how energy systems develop.

To get there, the commission is pursuing a number of interrelated priorities: to implement fully andeffectively an internal market in Europe; to enforce renewables and greenhouse gas emission targets andstrengthen the legislative framework to give greater certainty to investors; to create a solid framework fornew network infrastructure investments; to promote greater collaboration and cohesion in research,including industry-led initiatives; to boost energy efficiency, notably in buildings, appliances, and trans-port; and develop partnerships with other countries, both producers and other consuming nations.

It is vital to inform, involve, educate, and motivate the widest possible public. Every citizen can play apart in the low-carbon revolution.

This book is therefore both timely and important. It is also highly educational. It can help us betterunderstand the opportunities and challenges renewable energy creates and learn from the experience ofothers. In this way, we will all, whether in politics, business, education, or at home, be better equipped tomake, with confidence, the vital decisions that will lead to the energy system we seek for the future—asystem that is at once secure, sustainable, and economically robust.

Günther OettingerEuropean Union Energy Commissioner

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