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According to a recent press release from WindEurope, investments in wind energy in Europe have decreased over the past year, with only €19 billion invested in new wind farms in 2020, down from €26.3 billion in 2019. This decline in investment highlights the urgent need for Europe to address its market design and green industrial policy to create a supportive environment for renewable energy investment.
The press release emphasizes that the decline in investment is not due to a lack of demand for wind energy, as wind power installations in Europe grew by 14% in 2020. Instead, the decrease is attributed to a lack of long-term policy visibility and market design, which are crucial for investors to make informed decisions and commit to long-term projects. This lack of clarity has created uncertainty and risk for investors, resulting in fewer projects being brought forward.
To address this issue, WindEurope calls for a more robust and coherent market design that includes longer-term visibility on support mechanisms, such as auction schedules, and a stable regulatory framework. In addition, the organization emphasizes the need for a green industrial policy that incentivizes investment in renewable energy and strengthens Europe’s supply chain for wind energy components.
A green industrial policy would involve targeted support for the development and production of renewable energy technologies, such as wind turbines and energy storage systems, as well as the establishment of a strong supply chain within Europe. This would not only support the growth of the wind energy industry but also contribute to the overall development of the European economy.
Furthermore, the press release highlights the role of the European Union in driving investment in renewable energy. WindEurope calls for the EU to adopt a long-term renewable energy target of at least 450 GW by 2050, which would create a clear signal to investors and support the development of a robust and sustainable market for renewable energy.
In conclusion, the decline in investment in wind energy in Europe highlights the need for a more supportive environment for renewable energy investment. A robust and coherent market design and green industrial policy are crucial to provide investors with the long-term visibility and certainty needed to commit to renewable energy projects. By adopting these measures, Europe can support the growth of the wind energy industry and contribute to the overall development of a sustainable and prosperous economy.