EU Boosts Solar Energy Targets by 87% but Falls Short of Industry Potential

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European Union member states are ramping up their reliance on renewable energy sources, with a significant surge in energy targets averaging an 87% increase. However, concerns arise as grid and flexibility planning fall short of aligning with these ambitious renewable energy goals, potentially jeopardizing the energy transition process.

Jonathan Bonadio, Senior Policy Advisor at , emphasized the importance of synchronizing energy system planning with renewable energy targets, stating, “ risks putting the cart before the horse. Energy system planning needs to be in sync with energy generation targets. Without proper energy system planning, solar projects will be held up, solar energy will be wasted, and the business case of solar will be undermined.”

Although expected in summer 2023, EU member states have now submitted their draft updated National Energy and Climate Plans (NECPs), with 26 out of 27 countries submitting, while Austria's submission remains indefinitely on hold. These updated plans represent a draft revision of the NECPs endorsed by the European Commission in 2019.

The revised NECPs indicate a substantial increase in solar energy ambition, with and Ireland notably standing out by multiplying their respective targets by more than 5 and 10, respectively. Despite the heightened ambition, there's a glaring gap in addressing the investments required for grid deployment, flexibility, and digitalization.

Although most NECPs mention flexibility to some extent, only four countries have provided concrete targets for demand-side flexibility through measures such as smart-meter roll-out or demand-side response.

The lack of emphasis on demand-side tools in NECPs could hinder citizens' adaptation to the evolving energy landscape. Additionally, inadequate investment in storage infrastructure and demand-side response may unnecessarily strain the electricity grid.

While some countries have defined dedicated targets for energy storage, the majority fail to adequately plan for empowering the use of renewables around the clock. Furthermore, only two EU countries have set targets or investment plans for their distribution electricity grid, highlighting a broader shortfall in grid planning.

Despite the increased ambition in renewable energy targets, the EU's total ambition falls short of both the EU Solar Strategy target and the industry potential, signaling the need for more comprehensive planning and investment strategies to achieve sustainable energy goals.

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