Energy Utilization of Renewable Resources in the European Union ― Cluster Analysis Approach

Abstract

This paper analyzes and evaluates the European Union (EU) utilization of renewable resources in energy production and consumption. Biomass and renewable waste, with a share of 64.2% of primary renewable energy production, is the most important energy source in the EU. However, utilization of renewables in energy production and consumption differs across EU countries and is significantly influenced by various factors, including environmental, social, and economic characteristics. Cluster analysis was used to reveal these differences based on the identification and quantification of a set of factors reflecting the availability of renewable resources, utilization of renewable resources, and relevant socio-economic indicators. The results indicate that there are nine main identifiable clusters, considering the high variability of selected variables. The analysis confirmed that the economically developed EU countries with significant renewable resources have above-average primary energy production from renewable resources and biomass in particular. On the other hand, small EU countries are aggregated in numerous clusters characterized by under-average values in terms of availability and utilization of renewable resources such as wood production or energy consumption but with a relatively high share of renewable energy in gross final energy consumption.