Investments in EU renewable energy: current status, instruments, and development prospects
Abstract
In contemporary scholarly research, investments in the European Union’s renewable energy sector are regarded as a key instrument for achieving the 2030 and 2050 climate and energy targets. This study examines the mechanisms and instruments for financing EU renewable energy investments, as well as the interdependence of regulatory, technological, and market factors that determine their effectiveness and resilience. The aim of the paper is to analyze the current state of EU renewable energy investments, identify the key instruments influencing these investments, and assess their development prospects. The research employs statistical analysis of investment and deployment data for renewable energy sources, comparative analysis of policy instruments, and content analysis of EU strategic documents and reports from international organizations. The results show that, between 2021 and 2024, renewable energy investment volumes grew by over 40% thanks to the combination of InvestEU budget guarantees, RRF grants and concessional loans, and the introduction of the EU Green Bond Standard. The implementation of market mechanisms (auctions, PPAs, carbon pricing) has optimized costs but also revealed the need to develop risk-hedging instruments and improve the regulatory framework. Structural barriers — approval delays, grid constraints, and price volatility — create a complex risk profile for EU renewable energy projects. While the EU has made significant progress in renewable energy investment, accelerated efforts and targeted interventions are required to overcome existing barriers and achieve the 2030 and 2050 climate and energy goals. A multifaceted approach combining robust policy frameworks, innovative financial instruments, and technological advancements is critical for future success.
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