Dr. Svetoslav Spassov, Assoc. Prof.
University of National and World Economy
https://doi.org/10.53656/str2024-3-2-cha
Abstract. This paper discusses the current challenges to solar energy capacity building in the EU in attempting to achieve both, the sustainable development goals and bigger energy independence from third countries. One particular challenge concerns the risks to investors in solar energy industry, deriving from the fast-growing number of solar installations across the Member States while the existing electricity cross-border grid cannot meet the needs of the EU energy market. This leads to wasting green energy and negative prices that affect the return on investment, apart from existing bureaucratic obstacles and regulatory difficulties. The paper argues that this and other socio-economic and political uncertainties and flaws such as occupational issues and the lack of long-term EU and state policies supporting solar energy investments in some countries do hinder the energy transition. Therefore, it is necessary that investments in solar energy address all these challenges otherwise finding alternatives to energy dependence on Russia and achieving the 2030 Sustainable Development Goals will be jeopardized.
Keywords: solar industry, solar energy, renewable energy sources, energy transition, energy security, grid connectivity
JEL: P28, Q01, Q20, Q42
