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Evaluation of Renewable Energy Sources Sector Development in the European Union

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  • Laima Okunevičiūtė Neverauskienė

    (Department of Economics Engineering, Faculty of Business Management, Vilnius Gediminas Technical University, LT-10223 Vilnius, Lithuania)

  • Alina Kvietkauskienė

    (Faculty of Economics, Vilniaus Kolegija, Saltoniskių g. 58 - 1, LT-08105 Vilnius, Lithuania)

  • Manuela Tvaronavičienė

    (Department of Business Technologies and Entrepreneurship, Faculty of Business Management, Vilnius Gediminas Technical University, LT-10223 Vilnius, Lithuania
    General Jonas Žemaitis Military Academy of Lithuania, LT-10322 Vilnius, Lithuania
    Institute of Humanities and Social Sciences, Daugavpils University, LV-5401 Daugavpils, Latvia)

  • Irena Danilevičienė

    (Faculty of Economics, Vilniaus Kolegija, Saltoniskių g. 58 - 1, LT-08105 Vilnius, Lithuania
    Department of Financial Engineering, Faculty of Business Management, Vilnius Gediminas Technical University, LT-10223 Vilnius, Lithuania)

  • Dainora Gedvilaitė

    (Faculty of Economics, Vilniaus Kolegija, Saltoniskių g. 58 - 1, LT-08105 Vilnius, Lithuania)

Abstract

The global energy landscape is transforming, driven by the urgent need to address climate change, reduce dependency on fossil fuels, and promote sustainable economic growth. Renewable energy sources (RESs) have emerged as a cornerstone of this transition, offering environmental benefits and significant potential to catalyze economic development. By harnessing inexhaustible natural resources, such as solar, wind, hydro, and biomass, renewable energy systems provide a pathway to achieving energy security, fostering innovation, and generating new economic opportunities. In this article, the economic effect on the RES sector development was examined. The authors defined the set from seven indicators: real GDP growth, unemployment rate, inflation rate, exports of goods and services, government debt, foreign direct investments, and labor cost index, which allowed them to evaluate the EU countries’ economic situation and rank the countries by economic stability level. The results, which were obtained using a multi-criteria evaluation method, show that the EU countries whose economies are the strongest according to the evaluated macroeconomic indicators are Luxembourg, Malta, Estonia, and Ireland. The countries with the lowest scores are Greece, Italy, and Spain. Seeking to evaluate the development level of the RES sector in all ranked EU countries, the analysis of RES sector development during the 2012–2022 period, using these RES indicators—share of renewable energy in gross final energy consumption by sector—in general, in transport, in electricity, and in heating and cooling, was carried out and, through a different multi-criteria method, the countries were ranked by RES development. After the analysis was carried out, it could be stated that the economic situation stability in the country does not directly affect the growth of the RES sector development, and the two rankings by different indicators are heavily uncorrelated. RES sector development can be affected by many other circumstances. RES development is still stagnating in some countries, despite macroeconomic stability, for several reasons: institutional and political barriers, differences in the availability of finance, infrastructure limitations, and technological and human resource shortages.

Suggested Citation

  • Laima Okunevičiūtė Neverauskienė & Alina Kvietkauskienė & Manuela Tvaronavičienė & Irena Danilevičienė & Dainora Gedvilaitė, 2025. "Evaluation of Renewable Energy Sources Sector Development in the European Union," Energies, MDPI, vol. 18(17), pages 1-23, September.
    • Handle: RePEc:gam:jeners:v:18:y:2025:i:17:p:4786-:d:1744945
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