Where renewable energy sources funds are invested? spatial analysis of energy production potential and public support

Abstract

Energy transition in the European Union (EU) is strongly related to public support from structural funds which enable member states to create new and renovate existing renewable energy source (RES) installations. However, in order to maximize benefits of these investments it is crucial to consider where RES funds are allocated, how it corresponds with RES potential in specific locations, and how future implementation of energy policies can be improved. In this study, RES development projects supported by EU funds, implemented in the period 2004–2019 in Poland, were analyzed in relation to solar, wind and biomass energy potential. The study was conducted with the use of agglomeration method and k-mean method to define clusters of local administrative units characterized by similar features of RES funds absorption and renewable energy production potential. The results obtained show that in the case of all energy sources there is no correlation between high RES funds absorption and energy production potential. The final conclusion of the research is that in order to boost energy transformation into more sustainable solutions, renewable energy production potential should be considered as a factor to allocate public financial support for future energy policy implementation.