Europe is currently undergoing an energy transition, but this is not solely focused on environmental goals. It is primarily about maintaining competitiveness, building energy independence, and ensuring energy supply security. However, meeting the EU's ambitions and needs requires significant investment in renewable energy sources (RES) – the EU needs 100 GW of new capacity per year at a cost of approximately EUR 100 billion. In her latest analysis, Eva Sadovská, an analyst at WOOD & Company, examined the extent to which renewable energy sources are used in Slovakia, which EU countries are leaders in their use, and why investments in green energy represent a unique investment opportunity.
In this analysis, you will learn:
- What is the share of renewable energy sources in the Slovak Republic ?
- Which EU countries dominate in the use of RES ?
- Why does the EU need 100 GW of new capacity per year, and what does this mean for investors ?
- Why is it worth investing in green energy ?
The war in Ukraine has increased pressure on the EU to become more energy self-sufficient. The European Commission is prioritizing greater use of renewable energy sources to reduce dependence on Russian energy imports. The EU's 2030 target, which is part of the Fit for 55 reform package, is set at a minimum share of 42.5% of energy consumption coming from renewable sources. However, the vast majority – up to 20 EU countries – currently have a share of RES below 30%, which means that massive investments in "green" infrastructure are needed across the Union.
A renewable energy source (RES) is a non-fossil energy source whose energy potential is continuously renewed by natural processes or human activity. Examples include hydro, wind, solar, and geothermal energy, as well as biomass and biogas. It is an alternative to fossil fuels that contributes to reducing greenhouse gas emissions, diversifying energy supplies, and reducing dependence on fossil fuel markets, particularly oil and gas. Non-recyclable waste that can be converted into heat and electricity in waste-to-energy plants (WtE) is also considered a partially renewable energy source. According to data from the International Energy Agency (IEA) from October 2024, investment in renewable energy sources in Europe grew by more than 40% to USD 134 billion in 2023, with the EU now investing 10 times more in clean energy than in fossil fuels.
Sweden is the "green" leader. The top ten also includes some surprising countries, including Romania
At the end of 2024, Eurostat published data on the use of renewable energy sources (RES) for 2023 for all EU economies. This includes both overall figures and figures for gross electricity consumption, heating and cooling, and transport. Sweden is the country with the highest share of energy from renewable sources, at 66.4%. This Nordic economy recorded a high share of RES, particularly in gross electricity consumption (87.5%) and heating and cooling (67.1%).
Interestingly, the top ten also includes countries from Central and Eastern Europe (CEE region), such as Latvia (43.2%), Estonia (41.0%), Lithuania (31.9%), Croatia (28.1%) and Romania (25.8%), which, despite a similar transformation history to Slovakia, have significantly surpassed our country in the use of RES.
The EU as a whole achieved a share of 24.6% in 2023. On the other hand, the lowest shares were reported by Luxembourg, Belgium, Ireland, and Malta, where the share of RES did not exceed 16% in 2023.
|
EU countries, share in %, years 2022 and 2023 (Source: Eurostat) |
Share of energy from RES (total) |
Share of energy from RES in gross electricity consumption |
Share of energy from RES in gross heat and cooling consumption |
Share of energy from RES in gross consumption in transport |
||||
|
2022 |
2023 |
2022 |
2023 |
2022 |
2023 |
2022 |
2023 |
|
|
Sweden |
66,3 |
66,4 |
83,4 |
87,5 |
69,8 |
67,1 |
28,8 |
33,6 |
|
Finland |
47,7 |
50,8 |
48,0 |
52,4 |
58,3 |
61,3 |
18,8 |
20,6 |
|
Denmark |
42,4 |
44,4 |
77,2 |
79,4 |
52,3 |
54,9 |
10,4 |
10,8 |
|
Latvia |
43,7 |
43,2 |
53,5 |
54,3 |
61,0 |
61,4 |
3,1 |
1,4 |
|
Estonia |
38,5 |
41,0 |
29,1 |
31,8 |
65,4 |
66,7 |
8,5 |
9,1 |
|
Austria |
34,1 |
40,8 |
74,8 |
87,8 |
31,3 |
39,4 |
10,7 |
13,2 |
|
Portugal |
34,7 |
35,2 |
61,0 |
63,0 |
45,5 |
47,1 |
8,7 |
11,2 |
|
Lithuania |
29,6 |
31,9 |
26,5 |
36,5 |
51,5 |
53,6 |
6,7 |
7,2 |
|
Croatia |
28,1 |
28,1 |
56,2 |
58,8 |
37,2 |
36,2 |
2,4 |
0,9 |
|
Romania |
24,2 |
25,8 |
43,7 |
47,4 |
26,3 |
29,1 |
8,9 |
8,0 |
|
Greece |
22,7 |
25,3 |
42,4 |
48,2 |
30,6 |
35,5 |
4,1 |
3,9 |
|
Slovenia |
25,0 |
25,1 |
37,0 |
41,9 |
34,0 |
34,3 |
7,8 |
10,0 |
|
Spain |
21,9 |
24,9 |
50,9 |
56,9 |
19,5 |
21,4 |
9,7 |
12,0 |
|
EU27 |
23,1 |
24,6 |
41,2 |
45,3 |
24,9 |
26,2 |
9,6 |
10,8 |
|
Bulgaria |
19,0 |
22,5 |
20,1 |
29,4 |
31,6 |
34,9 |
7,7 |
8,1 |
|
France |
20,4 |
22,3 |
27,3 |
30,0 |
27,3 |
29,9 |
8,9 |
10,0 |
|
Germany |
20,8 |
21,6 |
48,0 |
52,3 |
17,4 |
17,1 |
10,1 |
11,9 |
|
Cyprus |
19,4 |
20,2 |
17,0 |
20,9 |
41,6 |
42,8 |
7,2 |
7,3 |
|
Italy |
19,1 |
19,6 |
37,1 |
38,1 |
20,6 |
21,7 |
10,0 |
10,3 |
|
Czech Republic |
18,1 |
18,6 |
15,5 |
16,4 |
25,8 |
27,8 |
6,2 |
5,7 |
|
Netherlands |
15,1 |
17,4 |
39,7 |
46,4 |
9,1 |
10,2 |
11,1 |
13,4 |
|
Hungary |
15,1 |
17,1 |
15,3 |
19,5 |
20,2 |
22,3 |
7,8 |
7,6 |
|
Slovak Republic |
17,5 |
17,0 |
22,9 |
24,2 |
19,9 |
18,8 |
8,9 |
9,2 |
|
Poland |
16,6 |
16,6 |
21,0 |
25,8 |
22,1 |
20,4 |
5,8 |
6,0 |
|
Ireland |
13,1 |
15,3 |
37,4 |
40,4 |
5,5 |
7,9 |
5,8 |
7,6 |
|
Malta |
14,0 |
15,1 |
10,1 |
10,7 |
39,9 |
47,5 |
10,5 |
10,7 |
|
Belgium |
13,8 |
14,7 |
29,1 |
31,4 |
10,6 |
11,3 |
10,4 |
12,1 |
|
Luxembourg |
14,3 |
14,4 |
16,2 |
18,0 |
15,0 |
15,5 |
8,7 |
9,2 |
Slovakia at the bottom of the EU. The share of energy from renewable sources has been stagnating at around 17% for five years
In the case of Slovakia, the share of energy from renewable sources (RES) was reported at 17.0% in 2023. The stagnation in recent years is unmistakable, as compared to 2019 to 2022, with shares of 16.9%, 17.3%, 17.4% and 17.5%, it is difficult to speak of an improvement in this indicator. The share of RES in gross electricity consumption was 24.2%, in heating and cooling 18.8% and in transport 9.2%. Slovakia thus has the sixth lowest share of RES in the EU.
Europe must accelerate if it wants to meet its energy needs and ambitions. Investments in green energy are the driving force
Despite relatively good RES figures in some economies, the EU must accelerate and exploit the potential of green energy to a greater extent. The European Green Deal, which aims to achieve carbon neutrality by 2050, plays a key role in the EU. However, this process will be further accelerated by the new European Clean Industrial Deal (2025) strategy, which builds on the foundations of the Green Deal but goes deeper into industrial transformation and decarbonization. At the same time, it represents the European Commission's response to Europe's growing energy needs and the need to strengthen its competitiveness.
What is the Clean Industrial Deal?
It is an EU strategic plan from February 2025 that links climate goals with competitiveness within a single growth strategy.
Key elements of the Clean Industrial Deal's energy pillar:
Large-scale investment: 100 gigawatts of new energy sources per year
Priorities:
● Electrification and transition to domestic renewable sources
● Long-term power purchase agreements (PPAs)
● Reduction of electricity taxes
● Grid stabilization using battery storage
Financing: Mobilization of more than €100 billion to improve conditions for European clean technology manufacturing, implemented gradually through a strengthened InvestEU program, the Innovation Fund, and the planned Industrial Decarbonization Bank.
Source: European Commission, February 2025
It is crucial for investors that the EU has quantified the necessary increase in new energy sources as part of the Clean Industrial Deal. Europe needs to build 100 gigawatts of renewable energy sources every year, which corresponds to the annual output of approximately 100 Temelín-type nuclear power plants. This unprecedented need creates a huge investment opportunity worth EUR 100 billion per year.
"One hundred gigawatts from renewable energy sources is a huge amount of energy that must be achieved not only for environmental reasons, but above all to maintain Europe's relevance, competitiveness, security, and independence in the world," explains Václav Kůla, who heads WOOD & Company's Renewables sub-fund.
Kůla also acknowledges the validity of some of the criticism from entrepreneurs, especially when it comes to bureaucracy and the pace of change. "In the short term, however, we have no other options. Gasification of coal-fired power plants, construction of new gas sources, nuclear power plants or small modular reactors – none of these will help us secure new energy sources quickly enough. Simply put, the European energy mix currently has no alternative but to continue building renewable energy sources. Investments in RES thus represent an exceptional investment opportunity," Kůla concludes.
WOOD & Company Renewables Sub-Fund
This is an investment fund focused on the construction and management of renewable energy sources across Europe. The portfolio includes solar power plants, wind farms, and battery systems. The current value of assets is EUR 53.7 million. The subfund's current projects are: the Gogosu photovoltaic power plant (Romania) and the Ånge battery system (Sweden). The expected return on the subfund is 15% p.a., with a minimum investment of EUR 125,000 (for current SICAV investors, EUR 5,000). The investment horizon is at least 5 years.
For more information, visit: WOOD & Company Renewables Sub-Fund