Land availability poses a significant challenge for the expansion of renewable energy capacity in Europe, according to a recent analysis conducted by McKinsey & Company (McKinsey). In their report titled “Land: A crucial resource for the energy transition,” McKinsey emphasizes the importance of identifying and securing adequate land if the European Union (EU) aims to achieve its renewable energy targets.
The report reveals that meeting the additional renewable energy capacity requirements by 2040 in France, Germany, and Italy alone would impact an area equivalent to the size of Belgium, ranging from 23,000 to 35,000 square kilometers. These estimates highlight the substantial land requirements for wind and solar energy, which are projected to contribute more than 90% of the targeted capacity.
McKinsey points out that apart from technical suitability, a significant portion of land in Europe cannot be utilized due to strict regulations and environmental restrictions. For instance, only 9% of available land in Germany is deemed suitable for wind energy, while less than 1% of the land in Italy is suitable for solar photovoltaic (PV) projects without limitations.
The report highlights the considerable variations in regulatory constraints across Europe, including within countries, which can lead to tensions between different regions. McKinsey's analysis reveals that in Germany, technical, regulatory, and environmental limitations reduce the potentially available land for wind energy by 82%. The primary factor contributing to this reduction (nearly 60%) is the regulatory rules regarding the proximity to settlements and infrastructure for onshore wind projects.
Raffael Winter, a Partner at McKinsey, acknowledges the crucial role of land availability in the energy transition. However, he also emphasizes the need to consider other societal and environmental objectives such as agriculture and biodiversity conservation. Winter emphasizes the importance of addressing the increased competition for land resources by ensuring that renewable energy development strategies are both land-efficient and biodiversity-enhancing. He calls for collaboration between businesses and regulators across Europe to promote sustainable and comprehensive approaches to renewable energy deployment.
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Winter states, “The role that land availability plays in the energy transition cannot be underestimated, but we must also consider that land availability is crucial to other societal and environmental objectives, such as agriculture and biodiversity conservation. This creates increased competition for what are all extremely important issues. It's vital for businesses and regulators across Europe to act hand in hand to ensure that RES development is land-efficient and biodiversity-enhancing by harnessing deployment strategies that can ensure sustainability and promote a comprehensive approach.”