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The EU power sector is under increasing pressure due to rising electricity demand and the need to meet decarbonisation targets. Member states have been active in investing in renewables and building capacity to increase their share of renewables in electricity generation. However, it is important to examine what progress each member state has made in the deployment of renewable energy for electricity generation and what factors influence gross electricity generation from renewable energy. In this study, logarithmic mean Divisia index (LMDI) analysis was used to examine the changes in EU-27 countries' gross electricity generation from renewable energy sources (RES), wind, and solar PV from 2012 to 2021. The results show that the RES deployment per capita effect and the RES share effect were the main positive factors for the total gross electricity generation from RES in the EU. In contrast, the RES capacity productivity effect and the energy intensity effect had negative contributions. Population growth had a positive influence but was less significant than the other factors. The deployment of RES per capita effect was the main factor in the overall growth of gross electricity generation from RES in Northern Europe, Central Western Europe, and Central Eastern Europe, according to comparisons between the regional groups. RES share effect was the main driver in Southern Europe. The decrease in RES capacity productivity was the second most important factor influencing the variation in the amount of energy generated by RES in Northern Europe and Central Western Europe. The results could be used to develop more effective and tailored renewable energy policies that take into account the existing main drivers of RES, wind, and solar energy in each of the EU-27 member states. [ABSTRACT FROM AUTHOR]

A system dynamics modeling approach was used to analyze the impact of economical mechanisms on CO2 emissions from the Latvian district heating system that is not covered by the European Union (EU) Emission Trading System (non-ETS). Three policy instruments were included in the system dynamic model: carbon tax, subsidies for solar technologies, and funding for energy-efficient building renovations with the aim to decrease energy consumption. Eight development scenarios were examined, taking into account different policy mixes for the transition of the heat network to the low-temperature regime. The heat tariff was used as the main indicator to determine the pace and structure of the technology change. The existing natural gas technologies and three renewable energy technologies (biomass combustion equipment, heat pump, and solar collectors with accumulation) were included in the model. Modeling results show substantial CO2 reduction potential; however, the results are highly dependent on the applied financial instruments. It is recommended to apply a policy mix, including all the proposed policy instruments—carbon tax, subsidies for solar technologies, and funding for energy-efficient renovation. [ABSTRACT FROM AUTHOR]

The European Union has given a long-term commitment towards a low-carbon society. Power sector is to play an important role in achieving ambitious emission reduction goals. This article presents results of a research aimed at evaluating development of the Baltic power system under current framework conditions. Special focus is put on renewable energy analysis to estimate the potential of power sector decarbonization. A dynamic energy-economy model was developed by applying system dynamics modelling approach in order to evaluate changes in the energy system till 2050. Underlying structure of the model is based on energy resource flows according to the national electricity mix of each Baltic State. The model calculates energy generation costs of each technology taking into account national support schemes. Based on cost estimation, the installed capacity of each energy resource is determined. Modelling results suggest that wind energy has the potential to become dominant in the Baltic region. This is explained by increasing competitiveness of wind-generated power price compared to fossil-fuel-based generation. Solar energy has the potential to become popular from 2025 onwards due to decreasing investment costs. The market share of other renewable electricity technologies, such as hydro and biomass, will continue to increase reaching maximum between 2020 and 2030. Biogas plants are still not expected to play considerable role in electricity generation. [ABSTRACT FROM AUTHOR]