The EU's progress towards achieving a net-zero energy system by 2050 is off track and it is at risk of missing its 2030 targets unless substantial investments are made in the sector.

This assessment comes from a recent report by McKinsey analysts, which highlights that the EU faces the possibility of falling short of its RePowerEU objectives.

These objectives aim to nearly triple solar capacity from 209GW in 2022 to 600GW by 2030.

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Despite efforts to enhance energy efficiency and develop more renewable sources, the EU still accounts for 8% of global energy-related emissions.

This makes the EU the third-largest global contributor to energy emissions, following only China and the US.

Recommendations

The report recommends that the EU needs to increase annual infrastructure investments by 70% above the five-year average.

This step would bolster the grid's capacity to manage the growing renewable energy generation and the rising electricity demand, especially as sectors such as heating and transportation move to electric power.

The report also emphasises that investing in flexibility will be crucial to minimising the costs associated with expanding the grid, given that flexibility needs are projected to triple by 2030.

Among the report's other suggestions are streamlining permitting procedures for renewable and grid projects, reconsidering restrictions on renewable projects near specific structures such as airports, launching public engagement initiatives on renewables and energy efficiency, and providing financial incentives for emerging technologies such as next-generation energy storage.