The EU's updated Renewable Energy Directive (RED) sets targets for the EU's clean energy use, pushing the region to triple its wind and photovoltaic installed capacity by the end of 2030.
But turning this vision into reality will be no easy task. Even Bloomberg New Energy Finance's most ambitious scenario predicts that the EU will be five years later than that before reaching its target of 42.5% of final energy consumption from renewables.
To meet the new target of a further increase from 30%, the EU needs to urgently address licensing and grid bottlenecks that prevent faster deployment of renewable energy. However, this is only one aspect of the problem. While the EU appears to have a clear strategy on how to increase clean energy supply, plans to electrify energy needs still lag.
If consumers fail to electrify, such as by switching to new energy vehicles, excess wind and photovoltaic power will be wasted, causing electricity prices to plummet and suppressing the income of all power generation companies.