Greater use of domestic renewable energy sources will reduce Europe’s dependence on imported fuels, which in turn will help insulate the EU against fuel price volatility and increase the EU’s security of energy supply. Wind turbines, for example, use an abundant carbon-free resource, and once a wind farm is built, its operating costs are low, predictable and stable for up to 25 years.
The energy and climate targets provide policy clarity and market stability, which enables further industrialization, technological developments and cost reductions. In other words, the EU agreement will help industry to continuously lower the cost of renewable energy.
“The 27 per cent EU-level renewable energy target demonstrates a continued commitment to renewables in the EU,” says Vestas CEO Anders Runevad. “And we acknowledge the Danish policy leadership that helped to secure this outcome. In the absence of national binding targets, however, it is essential that a reliable governance system is developed to give confidence to investors that the target is truly binding.”