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Article

Analysis of the European renewable energy market in the context of the decarbonisation trend

Kateryna Kuznietsova Anna Omelchenko Oleksandr Chenusha
Abstract

This study aimed to identify the development trends of the renewable energy market in the European Union, with particular emphasis on its role in the decarbonisation of the energy sector. The study explores energy consumption patterns in the EU from 2000 to 2022 and analyses the contribution of renewable energy sources (RES) to the achievement of Sustainable Development Goals. A comparative analysis of the development of the renewable energy market and the energy systems of the EU and Ukraine is provided, taking into account Ukraine’s trajectory towards European integration. 
Special attention is given to the imperative of the circular economy as a leading economic model. The impact of the circular economy on global economic development is identified, particularly in terms of reducing waste and dependency on energy imports. A statistical analysis of the EU’s dependence on natural gas imports is conducted, along with an assessment of greenhouse gas emission reductions and the increasing share of RES in electricity generation. The findings indicate that the EU is actively addressing energy security challenges, notably through the expansion of wind and solar power while maintaining its global leadership in the energy transition. It was established that between 2005 and 2022, the share of RES in electricity generation within the European Union increased from 10.18% to 23.06%. Iceland and Norway emerged as leaders in this area due to their well-developed hydropower sectors. In 2023, the share of RES reached a historic high of 24.1%, contributing significantly to strengthening the EU’s energy independence. The main drivers of this growth were the implementation of legal frameworks, notably the Fit for 55 package and the REPowerEU plan. The structure of energy consumption in the EU is also examined, with RES accounting for 18.4%, highlighting the importance of improving energy efficiency. Key achievements in the development of the renewable energy market in Ukraine are outlined, along with the current challenges and prospects, particularly in the context of integration into the European energy system through ENTSO-E. The analysis underscores the positive impact of RES on environmental sustainability and the competitiveness 

Keywords

renewable energy; development trends; European energy space; energy system; circular economy; carbon neutrality; ESG principles

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Received 12.02.2025, Revised 01.05.2025, Accepted 05.06.2025

Retrieved from Vol. 12, No. 1, 2025

Suggested citation

Kuznietsova, K., Omelchenko, A., & Chenusha, O. (2025). Analysis of the European renewable energy market in the context of the decarbonisation trend. Economics, Entrepreneurship, Management, 12(1), 8-19. https://doi.org/10.56318/eem2025.01.008

https://doi.org/10.56318/eem2025.01.008

Pages 8-19

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