Macroeconomic impact of renewable energy. A paradigm shift in energy sourcing and economic competitiveness.

 

Europe has undergone a significant transformation in its energy procurement strategy in recent years, reshaping the landscape of economic stability and competitiveness. Europe was running a substantial portion of their energy procurement based on oil and gas from third countries, however the ever-growing international instability has prompted a strategic shift towards more national and sustainable energy solutions. A move catalyzed by the developments in renewable energy technologies, increasing output and number of installations. The benefits are: more stable energy supply for other industries; the development of technology suppliers for wind turbines, solar panels and structures; and a future export of energy generation expertise as the rest of the world follows.

By geography:

• Norway, with its long time expertise in hydropower, has embraced its natural resources to become a European powerhouse in renewable energy. With hydro production above the country's own consumption.
• Spain, made substantial strides in solar power installations, using its abundant sunlight to generate a considerable portion of its energy needs. With significant output also coming from wind, same time increasing., while hydro has decayed due to the climate change and the lesser rain. This year 2023 close to 50% of total electricity consumption is renewable.
• Netherlands, the country has made substantial strides in offshore wind energy, with ambitious projects, at the same time embracing solar energy, encouraging the adoption of solar installations on rooftops and in solar parks through government incentives.
• Germany, with its ambitious Energiewende program aiming to transition the country to a more sustainable energy, a commitment that has positioned Germany as a global exporter of renewable energy technology: wind turbines, photovoltaics technology, and structure for the production site.

Long-term opportunity in know-how export

The trend towards energy self-sufficiency not only reduces vulnerability to external shocks but also positions itself as a global leader in environmental stewardship. It also presents an opportunity for knowledge export. As these countries develop advanced technologies and methodologies for renewable energy, there is a growing potential for exporting this know-how to other continents.

Spain case

The weight of renewable energy in Spain's economy and therefore in the number of jobs it generates and occupies is rising, but even taking into account this progress there is still much room for improvement. A contribution to GDP of €14,970, a 1.65%.

At the energy level Spain is still a net importer but this will change as the electrification of the economy and the production of renewables increases, both trends fading the carbon fuels.

Import (Red),Export (Turquoise), Saldo (Yellow) of energy trade.

Spain and overall energy producers should capitalise more on the environmental benefits of their production and sell their renewable energy certificates at the right price.

Contact us to help you place your GO-RECs on the market at the right price if you are a producer, or to help you procure renewable energy if you are an industrial user. felipebranch@gdosolar.es / visit: www.gdosolar.es