RENEWABLE ENERGY DEVELOPMENT IN THE EU: ECONOMIC DETERMINANTS AND ENERGY SECURITY CHALLENGES

Abstract

In the context of the global climate crisis, the issue of renewable energy development in the European Union is gaining special strategic importance. The transition to renewable energy sources (RES) is a key factor not only for achieving sustainable development goals, but also for strengthening the energy security of the region. At the same time, this process is accompanied by a number of economic, infrastructural and technological challenges that require comprehensive scientific analysis. The purpose of the study is to analyze the current state of renewable energy development in the EU countries, identify economic determinants that affect its implementation, and assess the challenges to energy security in the process of transition to RES. The study uses a system-analytical approach, methods of comparative analysis, and statistical data analysis. Analytical generalization and expert assessment of current challenges are used to formalize the results. It is established that the development of RES in the EU countries demonstrates heterogeneous dynamics: the countries of Northern and Central Europe have achieved significant success in decarbonizing the energy sector. While other countries face barriers of an institutional, financial and infrastructural nature. The main economic determinants include the level of investment attractiveness of the sector, the availability of state incentives, the degree of energy diversification and the effectiveness of regulatory policy. Key challenges for energy security are identified, in particular, the problems of energy storage, the instability of RES production, dependence on imports of raw materials for the production of energy equipment and the need to modernize energy networks. A number of strategic measures are proposed to strengthen energy security, including the development of flexible technologies, regional cooperation, digitalization of energy consumption management systems and stimulation of localization of energy component production. Further research could focus on modeling scenarios of the EU's long-term energy balance, assessing the risks of global supply chains in the context of the development of renewable energy, and studying the socio-economic effects of the energy transition at the level of individual EU member states.