Renewable Energy Source Installations in EU Countries: History
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Contributor:
Bożena Gajdzik
,
Radosław Wolniak
,
Rafał Nagaj
,
Wieslaw Wes Grebski
,
Taras Romanyshyn

A significant link exists between a strong degree of societal development and the integration of renewable energy sources. In less prosperous EU nations, economic growth plays a pivotal role in renewable energy development. Barriers of an administrative nature exert a notable influence on renewable energy development, especially in less affluent EU countries, while grid-related obstacles are prevalent in Southern–Central Europe. In nations where the proportion of renewable energy sources in electricity consumption is substantial, an excess of capacity in the renewable energy market significantly affects its growth.

  • renewable energy sources (RESs)
  • decarbonization
  • sustainable development

1. Introduction

The goals of the energy policies of many countries around the world (highly developed countries) are to guarantee the reliability of fuel and energy supply, increase the competitiveness of the economy, increase energy efficiency, and minimize the negative environmental impact of the energy sector. One way to achieve these goals is to increase the exploitation of renewable energy sources (RESs). The consideration of energy and intensity consumption is pivotal in the journey toward decarbonization, as these factors directly influence the volume of greenhouse gas emissions discharged into the atmosphere [1]. In a modern world focused on environmental protection, renewable energy sources (RESs) are an alternative to the traditional energy carriers—fossil fuels [2]. Renewable energy is derived from natural processes in nature, which allows its resources to be replenished in repeated cycles, taking into account resource conditions. The strategic goal of global and European energy policy is to increase the use of RE (renewable energy) resources. Renewable energy includes energy from the direct use of solar radiation, wind, geothermal resources, water resources, solid biomass, biogas, and liquid biofuels. Faster deployment of renewable energy is one of the key solutions needed for decarbonization and climate change mitigation [3].
If Europe is to be climate neutral, electricity generation should be fully decarbonized by 2050, and more than 80% of the EU’s electricity must come from renewable sources (these are the plans) [4][5]. In December 2018, the revised Renewable Energy Directive 2018/2001/EU came into force [6]. The ambitious targets set for 2030 (a binding renewable energy target of at least 32% at the EU level) require the spread of renewable energy technologies and faster market penetration. To effectively manage the sporadic characteristics of renewable energy sources, industries must innovate by creating new technologies, constructing new transmission infrastructure, and allocating resources to storage solutions [7][8][9][10]. In addition to further technological development, which is made possible by, among other things, reducing costs and improving performance targets in line with the European Strategic Energy Technology Plan (SET Plan) [11], it is necessary to address a number of non-technological issues (behavior and awareness) that continue to stand in the way of the large-scale dissemination of RES technology [12][13].
The development of the RES sector is being pursued with the support of governments, with not only financial incentives but also the creation of an appropriate legal framework to encourage the development of the sector in EU countries. Each EU country has set its own targets for the share of RESs in total energy production, ranging from 10% in the case of Malta to 49% in Sweden. The share of renewable energy in the gross final energy consumption in the EU settled at a level of 21.8% in 2021 compared with 9.6% in 2004, and the share of renewable energy in electricity consumption was 37.5% in 2021 compared with 15.9% in 2004 [14]. The path of EU countries to RES growth in total energy sources is not easy. European countries are overcoming many barriers to achieve their RES growth targets [11]. The process of transitioning from fossil fuels to RES—which necessarily includes phases of technical-scale deployment of the new technology, such as research, prototyping, demonstration facilities, and commercialization—requires a significant lead time and is a difficult process [12]. A detailed analysis of the costs of planned investments is needed, and there are situations in which the lack of reflection of the costs of production, transmission, and use of energy is compounded by subsidies for the extraction and consumption of fossil fuels, which are applied in various forms (albeit reduced).
In doing so, it is necessary to adequately prepare the public for the adoption of new solutions through extensive education. In the EU, there are countries that are doing a great job of building infrastructure for RES, such as Sweden, as well as countries where RES investments are still insufficient, such as Poland (the country has been oriented toward centralized, large, and expensive fossil fuel-use projects) [14].
The long-standing tradition of using coal as the main energy fuel, the energy subsidies used in the past, and the low prices of traditional energy carriers have made the introduction of renewable energy much more difficult [15]. A barrier that is difficult to overcome is the high capital expenditure [16]. Taking into account the economic aspect (a prerequisite for achieving a significant share of renewables in the energy balance and in electricity), it must be taken into account that the higher price of energy produced from renewable sources (compared with classical sources), when used locally, can be at least partially reduced by the cost of unnecessary transmission (transfer) [17]. Nevertheless, in a number of cases, the cost of reserving energy supplies from the electricity and/or gas system must be taken into account [18]. There are a number of barriers limiting the development of power generation using renewable energy sources. They are a set of factors of psychological, social, institutional, legal, and economic nature [19][20].

2. The Current Trends in Green Energy Concepts

The prevailing global trend focuses on generating green energy, which entails utilizing renewable energy sources (RESs). This trend holds immense significance due to the urgent need to combat climate warming caused by greenhouse gas emissions. The primary avenue for achieving a substantial reduction in greenhouse gas emissions is the worldwide commitment to the “net zero by 2050” strategy, as established by the Paris Agreement on climate protection [4]. In alignment with the Paris Agreement, the European Union has bolstered its climate and energy policies, marking a significant shift in direction as part of the European Green Deal [1]. This strategic plan, grounded in a comprehensive impact assessment, has led the European Commission to propose even more stringent 2030 targets, aiming for at least a 55% reduction in greenhouse gas emissions compared with 1990 levels, as outlined in the draft European climate law (Fit 55).
The European Union has consistently pursued the objectives of the “Clean Energy for All Europeans” package (CEP) [2][3]. In December 2019, nearly all EU leaders expressed their commitment to implementing net zero strategies by 2050. The Paris Agreements have introduced a new dimension to climate policy, with the primary goal of limiting the global temperature increase to 2 °C above pre-industrial levels, as stated in Article 1.1(a), rather than solely focusing on reducing carbon dioxide emissions [4]. In accordance with these policies and various EU documents, nations are making substantial investments in renewable energy resources. Numerous programs and initiatives have been established within the EU, including information campaigns and subsidies to support new investments, such as programs that promote the installation of photovoltaic panels, solar panels, and heat pumps [1][2][3][4][5][6][11][12][15][16][17][18][19][20][21]. European policy has also spurred many countries to introduce regulations aimed at reducing greenhouse gas emissions and promoting the development of renewable energy sources [12][13].
The possibility of providing support for RES investment and development stems from the European Union’s energy policy, as defined in, among other things, Directive 2009/28/EC. Through the Horizon 2020 program, the European Union is implementing measures to find and support new and innovative solutions that will help Europe successfully achieve these goals—from drawing light and heat from the sun to geothermal energy from deep within the Earth and all other natural energy sources. Horizon 2020 has several important projects underway aimed specifically at eliminating market barriers and accelerating the deployment of renewable energy technologies. These include financial instruments, such as auctions, which are becoming a pillar of efforts to support renewable energy policies; the AURES (European #H2020 research project on Auctions for Renewable Energy Support) and AURES II projects have identified and evaluated the auction options in use and determined their impact on energy policy mechanisms and markets under different conditions (http://aures2project.eu/, accessed on 15 September 2023) [15]. At the regional level, the CoolHeating project [16] has supported the deployment of small modular heating and cooling grids in Southeast Europe using an improved business strategy and innovative financing schemes. The importance of prosumers, or energy users who both produce and consume electricity, is being addressed by the PV-Prosumers4Grid initiative [17]. The BestRES project [18] analyzed the possibility of aggregating various distributed renewable energy sources. In order for “bioenergy villages” to be created, bioenergy concepts must be in the investment stage. Thanks to the BioVill project [19], villages in Croatia, Serbia, Slovenia, Northern Macedonia, and Romania have reached a point in their development at which they can cooperate with long-established markets in Austria and Germany. WinWind project partners [20] have developed a number of good practices drawn from their own countries to increase public acceptance of wind energy in targeted regions. Biomass is also a valuable source of renewable energy. The SECURECHAIN project [22] has contributed to the optimal management of the wood biomass supply chain in Europe. The SEEMLA (abbreviation from sustainable exploitation of biomass for bioenergy from marginal lands) project (https://www.ifeu.de/en/project/seemla/, accessed on 15 September 2023) [22] aimed to obtain high energy yields from inferior land, while the subject of the uP_running initiative [22] is bioenergy obtained from tree pruning residues.
According to an analysis of the existing literature [9][10][11][12][13][14][15][16][17][18][19][20][21][22] it is evident that researchers are showing a growing interest in exploring the challenges associated with renewable energy source (RES) development. Furthermore, there is a noticeable emergence of studies that assess the influence of these barriers on the implementation of RESs [22]. This trend is clearly reflected in the scientific databases Web of Science and Scopus, as illustrated in Figure 1.
Figure 1. Number of publications about RES barriers in the databases WoS and Scopus between 2004 and 2022 (“Barriers of renewables”).
Despite the increase in literature interest in this research topic, the authors found a research gap in the topic undertaken. It was found that there is a lack of studies that take into account the analysis of all determinants and barriers affecting the implementation and thus development of RESs. There are studies creating indicators or indexes to measure the impact of barriers on RES implementation [22]. The literature has mostly either listed what the barriers to RES development are [23][24][25][26][27][28][29][30][31][32][33] or evaluated them only for a single country [24][25] or a non-EU country [27][30][31][33]. However, in the area of socioeconomic factors, the literature has analyzed either the economic factors resulting from market imperfections [23] or trade relationships [29] with overdated data [23][24][25][26][28] or omitted the level of social development of countries [22]. There is a lack of analyses that take into account the impact of the market (overcapacity) and socioeconomic factors (socioeconomic development of the countries) or barriers (in a negative impact situation). There is a lack of holistic analyses that additionally attempt to analyze the occurrence of similar relationships for groups of countries or regions in all analyzed areas of RES development. 

3. Barriers to Development of RESs

In the literature, various authors have pointed to several categories of barriers (Table 1). The main barriers associated with the development of renewable energy include limited opportunities for entrepreneurs to finance investments, legal support regulations, administrative and procedural difficulties, and with the operation of transmission networks.
Table 1. Barriers to RES development according to the literature review.
Year and Country Authors Category of Barrier Description
1999
Poland		 Wiśniewski
[23]		 Market
  • Resulting from market imperfections in the optimal allocation of resources, including market barriers of an economic and financial nature that occur when renewable energy technologies have already been introduced to the market and are typical of the situation in most European Union countries just facing a progressive process of liberalization of the energy sector and the taming of new technologies.
Political
  • Resulting from an anachronistic definition of development goals and a lack of adequate institutional infrastructure. Political and institutional barriers are typical of countries with economies in transition, including Poland.
2015
Poland		 Wasiuta [24] and others [25] Political
  • Gaps in the legal acts of the RES support system;
  • Organizational problem in the form of a low share of green energy in the balance of energy sold;
  • Inclusion of biomass co-firing in old condensing boilers as RES;
  • A lack of obligation to take into account in the study of conditions and directions of the spatial development of the municipality the issues related to the development of local resources of renewable energy sources.
Administrative
  • Financial security for investments;
  • Public procurement;
  • Procedures;
  • Tax regulations;
  • Limitation in the Natura 2000;
  • Joint implementation projects;
  • Technical conditions.
Economic
  • A lack of economic motivation for foreign investors to invest in RES in Poland;
  • Inadequate economic mechanisms, including, in particular, fiscal ones, which would make it possible to obtain adequate financial benefits in relation to the amount of capital expenditure incurred for facilities, installations, and equipment intended for the production of energy from renewable sources;
  • Relatively high investment costs of renewable energy technologies,
  • High cost of work (e.g., geological) necessary to obtain energy from renewable sources;
  • A lack of due tax preferences for the import and export of equipment intended for renewable energy systems.
Infrastructure
  • Poor synchronization of local use of renewable energy resources with spatial planning;
  • Low level of respect for the opinions of local communities and in cooperation with them in the development of RESs.
Market
  • A lack of widespread access to information on the distribution of RES potential;
  • A lack of information on production and design companies and the consulting companies dealing with this subject;
  • A lack of publicly available information on the procedures to be followed when opening and implementing this type of investment, as well as standard costs of the investment cycle;
  • A lack of knowledge about the economic, social, and environmental benefits associated with the implementation of investments using renewable energy sources;
  • A lack of information about manufacturers, suppliers, and contractors of systems using energy from renewable sources;
  • A lack of educational and training programs on renewable energy sources aimed at engineers, designers, architects, representatives of the energy sector, bankers, and decision-makers;
  • Difficulties in accessing information on possible sources of financing.
Gernarally OECD/IEA, Paris 1997 [26] Infrastructure In a technical sense, the vast majority of the world’s small- and medium-scale RES technologies already enable relatively reliable and trouble-free operation of equipment at a fairly high efficiency. Hence, the main objective of further research and development should be to strive for lower investment costs, including mainly material costs, rather than to slightly increase efficiency with a disproportionate increase in costs (this is especially true for high-power wind power technologies, photovoltaic systems, and technologies for obtaining liquid fuels from biomass).
2015
Chile		 Nasirov et al.
[27]		 Economic
  • Market structure issues hindering renewable integration;
  • Dominance of a few players in the market;
  • Challenges in negotiating power purchase agreements ;
  • Volatility in spot market prices.
  • Extended periods for financial recovery;
  • Absence of accounting for external impacts;
  • Limited availability of financial resources;
  • High upfront capital requirements.
Infrastructure
  • Grid connectivity limitations and insufficient grid capacity;
  • Lengthy permit processing times for a large number of applications;
  • Absence of a regulatory framework for land acquisition;
  • Elevated land speculation risk due to mining-related concessions;
  • Coordination gaps among pertinent institutions.
Administrative
  • Political instability as a contributing factor;
  • A lot of legal regulations that are continuously updated.
Market
  • Local resistance to project development;
  • Insufficient dissemination of information and public awareness;
  • Scarcity of required scientific and technical competencies in the workforce.
2012
European Union		 Lehmann et al.
[28]		 Administrative
  • Learning and knowledge spillovers: this barrier here is the lack of policies for promoting knowledge, sharing, and learning in the renewable energy sector. The policies for carbon lock-out include implementing feed-in tariffs (or quotas) and adopting feed-in tariffs with a breathing cap.
  • Uneven political playing field: this barrier highlights the absence of policies addressing political imbalances in the renewable energy sector. To promote carbon lock-out, policies should tighten the EU Emissions Trading Scheme, implement a price collar within the scheme, phase out fossil fuel subsidies, spur market liberalization, and use feed-in tariffs as a second-best means.
  • Community acceptance: this barrier pertains to the lack of policies to foster community acceptance of renewable energy projects. Policies for carbon lock-out involve promoting local ownership through feed-in tariffs (rather than quotas) and implementing transparent, participative planning and decision-making processes, along with clear and participative zoning.
  • Planning consent and policy commitment: this barrier relates to unclear and slow planning processes and a lack of government commitment to renewable energy deployment. Policies for carbon lock-out include handling planning more clearly and quickly, establishing one-stop contact points for investors, enforcing brief and binding approval periods, and having governments endorse explicit deployment scenarios.
  • Cross-border externalities: this barrier relates to challenges in coordinating cross-border transmission networks. To promote carbon lock-out, policies should encourage cooperative planning of European transmission networks by operators and foster cooperation between national regulators.
Infrastructure
  • A lack of network capacity: this barrier signifies insufficient network capacity for renewable energy integration. Partially deep connection charges and differentiated network use-of-system charges to provide locational signals are policies for carbon lock-out.
  • Intermittency, controllability, and securing peak capacity: this barrier points to challenges associated with the intermittency of renewable energy sources. Policies for carbon lock-out include defining technical requirements and offering feed-in tariffs with premiums for certain technologies, as well as promoting voluntary curtailment agreements.
  • Technology: this barrier relates to limited support for renewable energy pilot projects and large-scale deployment. Policies for carbon lock-out involve providing support for pilot projects and offering large-scale support for renewable technology deployment.
Economic
  • Economic incentives: this barrier signifies the absence of economic incentives for renewable energy storage and demand-side management. Policies for carbon lock-out include implementing dynamic electricity pricing, time-variant grid fees and taxes, and lowering entrance barriers to ancillary markets, such as reducing bid sizes in balancing markets.
  • Capital market restrictions: this barrier relates to restrictions in the capital market that hinder renewable energy investments. Policies for carbon lock-out involve substituting quotas with feed-in tariffs.
Market
  • Market power and regulation: this barrier highlights market power and regulatory issues affecting renewable energy development. Policies for carbon lock-out encompass unbundling, priority network access, setting timelines for processing connection requests, regulating efficient operation, and providing stronger regulatory incentives for investment and innovation.
2021
countries of
European Union		 Carfora et al. [29] Political
  • RES policy can play an important role in the deployment of RES technologies, but the policy is very restrictive for businesses.
Market
  • Market factors: the development of RES generation can cause production capacity shortages or overcapacity and affect the effectiveness of RES investments. The authors also indicated that trade relationships and trade networks can shape investment choices and encourage investment in renewable energy.
2013
Australia		 Byrnes et al.
[30]		 Administrative and Political Barriers in Australia:
  • Administrative obstacles, including protracted regulatory approvals and permitting processes [28][30].
  • Lack of transparency and expensive procedures for connecting to the grid [30][32].
  • Policy unpredictability characterized by abrupt policy shifts and inconsistent decision-making [30][33][34].
  • Continued government backing for conventional electricity sources, ingrained institutional practices, and the prevalence of established norms (dominant power structures).
Economic
  • Cost-related competitiveness issues.
Market
  • Insufficient social approval and public acceptance of renewable energy initiatives [30][35].
2005
United Kingdom		 Foxon et al.
[31]		 Infrastructure
  • “Systems failures” in moving technologies along the innovation chain, particularly in two stages: the transition between the demonstration stage and the pre-commercialization stage and between the pre-commercialization stage and the supported commercialization stage. These failures can be seen as barriers to progress.
Economic
  • Moving from the demonstration stage to pre-commercialization is hindered by insufficient financing available for research and development (R&D) and early demonstration projects. The incentives provided by measures like the Renewables Obligation are not enough to attract investment for high-risk, early-stage technologies.
Administrative
  • There is a lack of skills in key areas of renewable energy technology development, and this can be a barrier to progress. The text suggested that the skills needed for large-scale demonstration and early commercialization may differ from those involved in R&D and initial demonstration stages.
Market
  • The text identified various forms of risk, including technology risk, market risk, regulatory risk, and systems risks, which can deter the large-scale deployment of pre-commercial technologies. These risks can make investors hesitant to support renewable energy projects.
Intellectual Property (IP) Issues
  • Small and medium-sized enterprises (SMEs) face difficulties in registering patents and negotiating IP rights, which can hinder their ability to secure private equity finance and collaborate with universities.
Expectations and Market Uncertainty
  • The text emphasized the importance of long-term market expectations for renewable energy technologies. The uncertainty surrounding future market conditions could be a barrier to innovation and investment.
Policy Framework
  • The need for a stable and consistent policy framework was highlighted as a common theme. The longevity and stability of policies like Renewable Obligation Certificates (ROCs) were seen as beneficial for providing stability in the industry. A more stable policy framework not tied to individual technologies was recommended to create positive expectations for early-stage technologies.
Exit Strategies and Support Continuity
  • The text suggested that clear “exit strategies” need to be defined to determine when support will be withdrawn from technologies. This is important to ensure that technologies can progress to commercialization without perpetual public support.
Collaboration and Partnerships
  • The study identified partnerships between companies and end-users as promoting innovation and providing a competitive advantage. However, barriers to collaboration, such as IP issues, can exist.
2021
European Union		 Streimikiene [32] Economic
  • Investment costs, although diminishing;
  • Limited earning and money savings potential;
  • A risk of losing investments when moving out;
  • High costs of RES technology maintenance;
  • Uncertainty regarding operational costs;
  • Use of organic waste for energy generation provides economic benefits;
  • Lengthy investment payback periods;
  • High energy dependency on fossil fuels;
  • Regulations favoring fossil energy producers.
Administrative and Political
  • A lack of attention and resources from local authorities for RES promotion;
  • An unstable political support and changing policies;
  • High poverty and inequality;
  • Insufficient local community engagement;
  • Dependence on regional governments;
  • Low capabilities of community leaders;
  • A lack of incentives and underdeveloped business models for prosumption;
  • A lack of openness from technology vendors;
  • Prevalence of the “not in my backyard” (NIMBY) phenomenon;
  • Ineffectiveness of regional governance;
  • Resistance to RES penetration from mandatory regime actors.
Market
  • There is a substantial level of doubt and a shortage of confidence in RES technologies.
  • Consistent training is essential for the effective utilization of RES technology.
  • Incompatibility with “smart solutions” is a significant issue.
  • Apprehensions about the performance and dependability of RES systems persist.
  • Locating reliable information proves to be a challenging task.
  • The intricacy of utilizing and maintaining RES technology is a notable factor.
  • Rural communities lack the experience and knowledge required in this field.
  • The complexity of funding and subsidy programs adds to the complications.
  • Concerns arise regarding the privacy and security of data usage.
  • Worries exist about issues related to space and noise.
  • There is a valid concern about the potential harm to residences and landscapes.
  • Neighbors express dissatisfaction based on aesthetic considerations.
2023
Canada		 Patel and Parkins
[33]		 Economic
  • The initial investment costs of renewable electricity projects are excessively elevated.
  • The time required for renewable electricity projects to generate returns is overly extended.
  • The relatively low cost of electricity makes it challenging for renewable projects to produce adequate revenue or savings.
  • The ongoing operational and maintenance expenses associated with renewable electricity projects are deemed prohibitively high.
  • The planning, evaluation, and involvement in renewable electricity projects are considered too expensive.
Infrastructural
  • Renewable electricity initiatives pose excessive risks.
  • The state of renewable electricity technology and infrastructure is not sufficiently developed to be practical in our municipality.
  • The local and/or provincial electrical grid is inadequate for supporting a municipal renewable project.
  • Renewable projects compromise the scenic beauty of our municipality.
  • Renewable projects have the potential to harm the local wildlife.
  • Renewable projects generate noise and health-related issues.
Political
  • My municipality has primary objectives different from focusing on generating renewable electricity.
  • Provincial funding opportunities are highly competitive or unreliable.
  • The province is not inclined to back a local renewable electricity initiative.
  • The responsibility for developing renewable electricity generation does not fall within the municipal purview.
  • Municipal personnel lack the technical expertise to strategize for renewable electricity.
  • Anticipated community resistance to renewable energy infrastructure.
  • My municipality can lower its carbon emissions without engaging in renewable electricity development.
  • The town or city council is likely to object to a renewable energy project.
Source: authors’ own work based on [25][26][27][28][29][30][31][32][33].
Table 1 summarizes the barriers to renewable energy development from various studies conducted in different countries and regions over the years. In 1999 in Poland (Wiśniewski), the barriers included market issues related to economics and finance, as well as political and institutional challenges due to outdated goals and inadequate infrastructure [23]. In 2015 in Poland (Wasiuta), the barriers encompassed political and institutional problems, administrative challenges, economic and financial issues, location-related hurdles, and information and education gaps [24][25][26]. In 2015 in Chile (Nasirov et al.), the challenges consisted of economic and financial issues, technological and infrastructure obstacles, institutional and regulatory hurdles, and public awareness and information constraints [27].
In 2012 in the European Union [28], barriers were identified in generation, grids, market power and regulation, cross-border externalities, storage, and demand, and they included issues related to learning and knowledge spillovers, capital market restrictions, an uneven political playing field, community acceptance, planning consent and policy commitment, lack of network capacity, intermittency, controllability, securing peak capacity, market power and regulation, cross-border externalities, storage, and demand [31]. In 2021 in countries in the European Union [29], the barriers encompassed financial or economic factors; sociopolitical, regulatory, and environmental issues; and behavioral and psychological challenges [32]. In 2013 in Australia [30], barriers included administrative obstacles, lack of transparency, policy unpredictability, insufficient social approval, cost-related competitiveness issues, continued government backing for conventional electricity sources, and intellectual property issues [33].
Also, in 2005 in the United Kingdom [31], barriers involved systems failures, financial obstacles, skills gaps, risk perception, intellectual property issues, expectations and market uncertainty, policy framework, exit strategies and support continuity, and collaboration and partnerships. In 2021 in the European Union (Streimikiene), barriers covered financial or economic issues, sociopolitical, regulatory, and environmental factors, and behavioral and psychological challenges [32]. In 2023 in Canada (Patel and Parkins), barriers included economic, environmental/technical, planning, and political factors related to renewable electricity projects [33].
The literature review in Table 1 indicates that many factors influence the development of RESs. These factors are often grouped in different ways; nevertheless, the most important ones can be grouped into four groups of factors: administrative barriers [22][24][25][30][33], political barriers [22][23][24][25][27][28][30][31][32][33], grid barriers [22][26][27][28][33], and socioeconomic barriers [22][23][24][25][28][29][31][32][33]. Barriers to administrative processes were indicated in many literature items and mainly included public procurement, environmental planning, and the duration of administrative procedures. Network barriers are related to the state of regulation of networks and infrastructure. It is worth noting that these barriers are particularly emphasized in the literature in the field of renewable energy. Political barriers have been indicated by almost all publications on RES, and they concern unstable political support and remuneration for RES and a lack of or unstable climate strategy. The last group of barriers concerns market, economic, and social factors. To summarize this group of factors in the literature, it is indicated that they depend on the level of socioeconomic development of a given country and the balance of production capacity in the renewable energy market. Overcoming barriers to the installation of renewable energy sources in the European Union is a complex but necessary task. By addressing regulatory challenges, providing financial support, fostering innovation, and promoting public awareness, the EU can continue its journey toward a more sustainable and greener energy future. Through coordinated efforts at both the national and European levels, the EU can lead the way in the global transition to renewable energy sources and mitigate the impacts of climate change [23][24][25].
The first group analyzed are administrative barriers; among them, the researchers can describe the following barriers [22][24][25][30][33]:
  • Administrative obstacles, including protracted regulatory approvals and permitting processes: lengthy and complex administrative procedures can hinder the timely development of renewable energy projects.
  • Lack of transparency and expensive procedures for connecting to the grid: the cost and complexity of connecting renewable projects to the grid can be a significant administrative barrier.
  • Policy unpredictability characterized by abrupt policy shifts and inconsistent decision-making: frequent changes in government policies related to renewable energy can create uncertainty for investors and developers.
To overcome these barriers, simplifying administrative procedures and reducing approval times can motivate renewable energy project developers. Also, transparent and cost-effective grid connection procedures are needed. Providing clear and affordable processes for connecting renewable projects to the grid can be a strong motivator. Offering long-term policy stability can encourage investment in renewable energy projects.
The second type of barriers are political barriers. In this case, the especially important barriers are [22][23][24][25][27][28][30][31][32][33]:
  • Unstable political support and changing policies: inconsistent political backing for renewable energy projects can deter investment.
  • Opposition from local communities and government bodies: resistance from local communities and municipal councils can pose political challenges.
  • Dependence on regional governments: relying on regional authorities for support can result in varying priorities and inconsistent policies.
To overcome these types of barriers in RES development, governments should support a clear renewable energy strategy that can motivate investment and development. Also, an important problem is effective community engagement and public acceptance. Encouraging local communities to embrace renewable projects can be a significant motivator. Coordination between different levels of government can facilitate a more conducive environment for renewables.
The third type of potential barriers are economic barriers. The most important among them are [22][23][24][25][27][28][31][32][33]:
  • High capital costs for renewable electricity projects: the initial investment required for renewable projects can be a barrier.
  • Long payback periods: extended timeframes for recovering investments can discourage potential investors.
  • Limited revenue/savings potential for renewable projects: concerns about the profitability of renewable energy projects can be a barrier.
  • High operational and maintenance costs: ongoing expenses for renewable projects can affect their economic viability.
To overcome economic barriers, it is important to decrease capital costs. This requires efforts to reduce the upfront costs of renewable energy projects, which can be a powerful motivator. Also, it is worth accelerating the timeframe for achieving a return on investment, which can make renewable projects more attractive, and providing financial incentives and support can motivate investors and developers.
The fourth type of the barriers are market barriers. These barriers are connected to problems like the following [22][23][24][25][28][29][31][32][33]:
  • Market structure issues hindering renewable integration: challenges in the market structure can impede the growth of renewable energy.
  • The dominance of a few players in the market: market concentration can limit competition and innovation.
  • Volatility in spot market prices: price fluctuations in energy markets can create uncertainty for investors.
  • Limited availability of financial resources: a lack of accessible funding can be a market barrier.
To overcome them, it is important to diversify the market structure. This can be accomplished by encouraging competition and diversity among market players, which can motivate renewable energy development. The next important activity is to reduce market volatility by stabilizing energy prices, and markets could provide a stronger incentive for investment. Also, expanding financial support options can motivate renewable energy projects.
The last type of barrier in RES development is connected to infrastructure. The most important infrastructure barriers are [22][26][27][28][33]:
  • Grid connectivity limitations and insufficient grid capacity: inadequate grid infrastructure can limit the integration of renewable energy.
  • Lengthy permit processing times for a large number of applications: delays in permitting can slow project development.
  • Inadequate infrastructure to support renewable energy deployment: a lack of infrastructure can be an infrastructure barrier.
To deal with infrastructure barriers, organizations should expand grid capacity and improve connectivity by strengthening grid infrastructure, which can facilitate renewable energy integration. Also, faster permitting can motivate developers to move forward with projects. Developing infrastructure that supports renewable energy can be a strong motivator.
Addressing these barriers and leveraging the corresponding motivators requires a comprehensive approach that includes regulatory changes, stable policies, financial incentives, infrastructure development, and community engagement. By carefully considering and addressing these factors, governments and stakeholders can accelerate the transition to renewable energy sources.

4. European Green Deal

The European Green Deal is an ambitious policy initiative aimed at addressing climate change and environmental challenges [34]. It set a goal of achieving climate neutrality by 2050, meaning that the European Union aims to balance its greenhouse gas emissions with removals, effectively eliminating its net contribution to climate change [35][36]. The Green Deal is closely tied to economic recovery efforts, especially in the wake of the COVID-19 pandemic [37][38][39].
According to Kotseva-Tikova and Dvirak’s research, the NRRPs of member states, including Bulgaria and Lithuania, are designed to align with the Green Deal’s objectives, making sustainable and green investments a priority for economic growth [40]. Both Bulgaria and Lithuania have taken measures to reduce greenhouse gas emissions. They have experienced changes in their industrial sectors, energy resources, and economic structures to contribute to the Green Deal’s goal of reducing emissions. The NRRPs of Bulgaria and Lithuania allocate a significant portion of their funding to support green initiatives. Lithuania plans to allocate 37.8% of its funds to green projects, while Bulgaria aims for 53.66%. These projects encompass areas such as renewable energy, energy efficiency, and environmental sustainability. To finance these green projects, both countries are looking to engage the private sector. Bulgaria anticipates substantial private sector investment of around EUR 2.4 billion, while Lithuania plans for EUR 815 per capita in private investments. This collaboration aims to leverage additional capital for sustainable initiatives [39][40].
EU institutions should work toward harmonizing renewable energy policies and regulations across member states [41]. This could create a more predictable environment for investors and project developers. Continued financial support for renewable energy projects is possible through mechanisms like the European Structural and Investment Funds (ESIF) and the European Green Deal Investment [42]. Available and implemented projects at the level of the European Commission are tools in the climate policy of the EU member states. Educating the public about the benefits of renewable energy and involving local communities in the decision-making process can build support for renewable projects [43][44].
Encouraging collaboration between research institutions, industry, and governments can drive technological advancements in the renewable energy sector [45]. Implementing a robust carbon pricing mechanism can make fossil fuels less competitive and incentivize the transition to renewable energy [46]. Strengthening cross-border energy infrastructure and fostering cooperation among member states can facilitate the sharing of renewable energy resources [47]. Table 2 sums up the main strategies to overcome barriers in RES installation.
Table 2. The strategies to overcome barriers in RES installation.
Barriers to RES Installation Strategies to Overcome Barriers
1. Regulatory Challenges Harmonize EU-wide renewable energy regulations. Simplify and standardize permitting procedures. Promote regulatory predictability and stability.
2. Lack of Financing Provide financial incentives and grants for RES projects. Establish green investment banks and funds for sustainable financing. Encourage public–private partnerships for project funding.
3. Grid Integration Invest in advanced grid technologies and smart grids for RES integration. Upgrade transmission and distribution networks to handle intermittent energy sources. Implement demand response programs to balance supply and demand.
4. NIMBYism (Not In My Backyard) Engage local communities through public consultations and education. Offer community ownership options in RES projects to share benefits. Mitigate environmental and visual impacts through innovative designs.
5. Technological Innovation Allocate funding for research and development of next-gen RES technologies. Establish innovation hubs and clusters to accelerate technology advancement. Support technology transfer and collaboration with industry partners.
6. Market Barriers Phase out fossil fuel subsidies gradually to reduce market distortions. Implement carbon pricing mechanisms, such as carbon taxes and cap-and-trade systems. Promote energy efficiency measures to reduce overall energy demand.
7. Interconnection Issues Enhance cross-border energy infrastructure through EU projects and investments. Develop a common European electricity market to facilitate RES energy trading. Create a cooperative framework for balancing RES production and consumption.
8. Public Resistance Conduct public awareness campaigns highlighting the environmental and economic benefits of RESs. Involve citizens in decision-making processes through participatory forums. Provide transparency regarding project planning and environmental assessments.
9. Land Use Conflicts Implement zoning regulations that favor RES development in appropriate areas. Encourage the repurposing of degraded lands for RES projects. Promote mixed land use to reduce conflicts with agriculture and biodiversity conservation.
10. Energy Storage Challenges Invest in energy storage research and development. Establish incentive programs for grid-scale and distributed energy storage solutions. Develop a strategic plan for integrating energy storage into the grid.
11. Permitting and Licensing Delays Streamline and expedite permitting and licensing processes for RES projects. Create dedicated agencies or task forces to oversee approvals. Set clear timelines and benchmarks for permit reviews.
Source: authors’ own work based on [47][48][49][50][51][52][53][54][55][56][57][58][59][60].
Collaboration with international organizations and other countries allows for the sharing of best practices, technologies, and funding opportunities. Attracting foreign investment in renewable energy projects through favorable policies and regulations can boost development. Investment in grid expansion to accommodate renewable energy integration is essential [48]. Developing energy storage solutions can address intermittency challenges. Promoting electric vehicle (EV) infrastructure and encouraging EV adoption can act as distributed energy storage [49].
Offering insurance and guarantees can help mitigate risks associated with renewable energy investments [50]. The investments are realized in small, medium, and large markets. Manufacturing companies, particularly energy-intensive sectors like metallurgy, along with individual consumers in smaller local markets, share a common interest in making investments [61][62]. This shared interest stems from the imperative of deep decarbonization [33]. Energy-intensive industries, such as metallurgy, are compelled to allocate resources toward Renewable Energy Sources (RES) to ensure their continued viability within the market [63]. A prominent illustration of this commitment to decarbonization can be found in the metallurgical industry, as evidenced in the study by Gajdzik and Wolniak [64]. This industry, characterized by its substantial energy demands, recognizes that embracing RES represents a pivotal step toward achieving sustainability and reducing carbon emissions. Similarly, individual consumers in localized markets are increasingly inclined to invest in RES as a means of contributing to a cleaner and more environmentally responsible energy landscape [48].
Various industries beyond metallurgy are recognizing the significance of investing in renewable energy sources (RESs) to align with the imperatives of deep decarbonization. This strategic approach is not limited to any one sector but is instead a growing trend in the broader landscape of manufacturing and consumer markets [56].
Industries spanning from automotive manufacturing to electronics and technology production are increasingly turning to RES as a means to reduce their carbon footprint [55]. The automotive sector, for instance, is investing in electric vehicle (EV) technology, often powered by renewable electricity sources, to transition away from traditional fossil fuel-dependent vehicles. This shift not only reduces greenhouse gas emissions but also positions these companies favorably in an evolving market in which sustainability is a key driver of consumer preference [58].
Similarly, electronics and technology manufacturers are incorporating RES into their operations and products. Data centers, which are essential for the functioning of modern technology, are being powered by renewable energy to mitigate their substantial energy consumption [59][60][61][62][63][64]. Additionally, consumer electronics companies are designing products with energy efficiency in mind, often utilizing renewable energy to manufacture their devices [65][66]. Digitalization is a strong support for the development of industries [67]. In the European policy of the industrial concepts I 4.0 and I 5.0 [68][69], it is postulated that new technologies should be aimed at decreasing energy consumption. Even the tourism sector is incorporating green policies and promoting RESs and decarbonization [70].
Long-term power purchase agreements (PPAs) provide revenue stability for project developers. Funding research and development efforts to advance renewable energy technologies and make them more cost-effective is a key strategy for long-term sustainability [70]. Engaging in international diplomacy efforts, including participation in global climate agreements, can enhance the profile of renewable energy and create diplomatic opportunities for collaboration [71].
The success of these strategies depends on tailoring them to the specific challenges and opportunities of each region. It requires cooperation between governments, businesses, communities, and international partners to promote and expand renewable energy development on a global scale.

This entry is adapted from the peer-reviewed paper 10.3390/en16217364

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