Facilitating energy self-sufficiency in European industry
With rising geopolitical tensions, volatile energy markets, and growing concerns about climate change, the European Union faces critical challenges in ensuring a sustainable and secure energy supply which can support its industrial competitiveness. As such, efforts are needed to enhance resilience and avoid reliance on imported fuels through improved energy efficiency and use of renewable energy.
In response, the EU has launched initiatives to support energy independence and the use of renewables in industry, in particular the REPowerEU plan, which was launched following the Russian invasion of Ukraine. It aims to accelerate the transition by promoting renewable energy deployment, energy efficiency, and diversifying energy sources in industry. The plan also reinforces the efforts of:
- The European Green Deal
- The Fit for 55 Package
- The Renewable Energy Directive
But what can regions do to support this transition and to sustainable energy in industry?
Promoting better policies for Industrial Energy independence and security
Europe’s industrial sector is highly energy intensive, accounting for 25% of final energy consumption. While significant progress has been made in making industry more sustainable – between 1990 and 2022, the sector reduced its final energy consumption by 27.1% - there is still a long way to go and there are several challenges to overcome.
"One of the key challenges is the high initial investment costs associated with energy-efficient technologies and the slow return on investment, which discourages many industrial actors from making the transition,” explained Štěpánka Holečková and Michal Tobiáš from the Czech Technical University in Prague, Lead Partner of Repower Industries. “Additionally, regulatory uncertainty and complex permitting processes can delay the adoption of innovative decarbonisation solutions".
Repower Industries is aiming to promote energy independence of industries to ensure the energy self-sufficiency of factories and tertiary buildings, providing them with energy availability at any time and at an affordable cost. The project brings together eight partners from five EU countries to improve their policy frameworks for sustainable industry.
Working with their stakeholders, the partners are exploring potential areas of intervention to improve energy performance. For example, in Lithuania, partners are focusing on energy storage and financial support for renewables, while in Slovenia they are exploring circular energy use. "We see industrial symbiosis and waste heat recovery systems as two of the most effective approaches. By utilising excess heat from one industry to power another, companies can significantly reduce overall energy demand and carbon emissions”, explained Holečková and Tobiáš.
“Another promising area is energy storage solutions combined with different types of renewable energy sources, which ensure greater flexibility and reliability of industrial energy supply while reducing dependence on fossil fuels." But it is not technical innovation alone that is needed. “Innovative financing models such as green investment funds and carbon credit schemes are proving to be key enablers for industrial decarbonisation.”
Proven approaches for sustainable energy in industry from RESINDUSTRY
Repower Industries builds on the success of RESINDUSTRY, also led by the Czech Technical University in Prague, which identified many good practices on integration of renewable energy, energy storage, and circular energy systems, as well as technologies for energy management and digitalisation.
The project developed seven Action Plans for its partner regions, with actions to:
- Develop new funding streams
- Improve regulatory frameworks
- Develop new projects
- Simplify administrative procedures
- Provide education, training and awareness raising
For example, Extremadura, Spain, has streamlined grant applications for renewables in industries, while also developing dedicated expertise in their existing One Stop Shop to provide industry related services, while Gozo, Malta, launched a new call for proposals, providing grants for purchase of renewable energy technologies.
Find out more about how Interreg Europe is supporting the decarbonisation of businesses and industry through the websites of the ongoing Repower Industries, DeCo and CLIBUS projects, as well as past projects such as RESINDUSTRY and SME POWER.