European Commission further accelerates investments in renewables

The development of renewable energy sources and the installation of new capacities in the Union will be one of the fastest-growing sectors in the European Union. There is no doubt that the growth that this sector has recorded this year will continue for the next two years. New encouragement for investors in the renewable energy sector is a new measure by the European Commission (EC).

In particular, the EC adopted emergency measures that accelerate and intensify investments in capacities from renewable energy sources. This urgent decision of the Commission is composed of a series of measures that facilitate the procedures for investment and implementation of projects from renewable energy sources – which received the status of “main public interest.”

The goal is to shorten the procedures, and in certain segments, to exempt certain procedures, which will create a favorable business climate based on fast and effective procedures for obtaining permits. This decision of the Commission was adopted as a temporary emergency measure based on Article 122 of the Treaty on the Functioning of the European Union. Although it is a temporary decision of the Commission, it will be in force for more than one year, after which the revised decision for this sector will enter into force.

Greater access to cheap solar and wind energy for citizens, institutions, and businesses is also the reason for these measures, which according to announcements will be in line with environmental protection laws. Only investments in solar panels receive a new preferential treatment, and for investments in this segment, environmental impact assessment studies will not be required, which further shortens the time for starting and realizing the investment in solar panels up to a certain installed capacity.

According to the latest data in the EU, there has already been an increase in the production of solar energy by 12% and wind energy by 13%, and the total energy mix of renewable energy accounts for about 38%, and the installed capacity is 765.6 GW.

For the investment public, this is a favorable signal, because it is more than clear that investments in projects from renewable energy sources will take place in very accelerated procedures, and the pace of approval of administrative procedures will be significantly shortened.

The European Commission through a series of decisions, like this latest one, is trying to bridge the energy shortage, which happened as a result of the war in Ukraine. This process of huge support for the realization of new renewable energy capacities has a long-term goal, which is an energy transition in the direction of stability and permanent abandonment of dependence on Russian gas.

In addition, this measure of the Commission is expected to have a stabilizing effect on the price of electricity, which has recorded historic growth in the past few months, and the markets are still not completely stabilized. Although global investment conditions are rather unstable and it is uncertain how the situation will develop, a crisis is always an opportunity. Signals from the markets say that despite the uncertainty, investments in certain sectors bring earnings.

As the good old investment rule says, in crisis conditions, the best opportunities for earning are created, and this time too. The demand for electricity, especially from renewable sources, is huge. Hence, an increase in investments in renewable energy sources and an increase in earnings from these investments are expected. It is expected that by 2030, renewable energy in the EU will participate with about 70% of the total energy mix. If the pace continues, this target can be realized even earlier than 2030.