Analysis of the Potential of Clean Energy Deployment in the European Union

This paper aims to assess the situation of the energy system throughout the European Union member states (EU28), with a focus set on renewable energy and energy efficiency programs. The first section briefly presents the situation in terms of the improvement in clean energy and highlights the main gains recorded during time in EU28. The second part introduces an index of transformation of the economy through clean energy (ITCE) which is based on two main factors which reveal the contribution (inputs) and success (outcomes) of the EU28 on the clean energy path. Each factor is based on four sub-factors which portray, on one hand, the contribution in terms of the development of renewable energy use in transport, electrical energy, and heat and cooling together with the development of regulatory legislation, and, on the other hand, the gains in terms of energy security, energy intensity, environmental emissions, and total energy efficiency. The ITCE is identified by panel data analysis involving EU28 and shows the best and worst performers in terms of clean energy deployment. The findings of this paper show that, despite a gain acquired during the last years in EU28, the real potential of clean energy is still to be unlocked. By applying the ITCE to EU28 the best practices are emphasized and these may be spread out in the European space. The ITCE constitutes a useful performance tracking tool and it may be used as a support for new, better-designed, more suitable measures, and policies needed by national policymakers and regulatory authorities in the area of clean energy.