Increasing the share of renewable energy in the energy balance enhances sustainability. It also helps to improve the security of energy supply by reducing the Community's growing dependence on imported energy sources. Renewable energy sources are expected to be economically competitive with conventional energy sources in the medium to long term.
Renewable energy is, by definition, local energy.
Its development can create new business, bring employment and encourage economic and social cohesion in regions that otherwise lack industrial development. There is a considerable export potential for renewable energy technologies, particularly in the developing world. The need for Community support for renewable energy is clear. While several of the technologies, notably wind energy, small-scale hydro power and energy from biomass, are economically viable and competitive, and others are approaching viability, initial investment costs are high and investors often lack confidence in technologies that are relatively unknown. As a result, development has been limited, and the sector needs help if it is to 'take off' in marketing terms.