Microgeneration Outlook - Design for Micro-Combined Cooling, Heating and Power Systems - page 5

In order to fully understand the role and increasing importance of microgener-
ation systems within the actual European context, a critical look into the challenges
confronting the European energy sector is strongly needed. Consequently, the next
section will present the current challenges in the energy sector in view of facilitating
the interpretation of corresponding European policies and legislation.

2 Challenges in the European Energy Sector

“ [ 14 ], it is vital for industry, for

transport, for households and businesses alike. It is present in every aspect of life.
Derived from the Greek

Energy is essential for Europe to function ”

“ En é rgeia ” , it meant being active or being at work [ 15 ].

Likewise, “ the word energy incidentally equates with the Greek word for chal-

lenge [ 16 ]. In this line of thought, the European energy sector has an entire array of

challenges and barriers to cope with: from environmental issues to ensuring the
security of supply for the European Union, from the liberalisation of the energy
market to social, economic,

”

financial and technological matters. Last but not least,
there are political and legal shortcomings.
The European energy sector has to mitigate environmental concerns on climate
changes resulted from greenhouse gas (GHG) emissions, ensure the security of
supply by limiting the external vulnerability on energy imports in the context of
increasing energy demands in the [ 17 ], develop the

infrastructure and connections for the European energy networks to avoid possible
energy crisis or energy cut-offs. At the same time, the European Union has to
develop a fully liberalised Internal Energy Market, in which fair competition is
stimulated, investments are booming, innovation is fostered through research and
development (R&D) of emerging technologies, in order for the Union to safeguard
its place as a powerful global energy market.
There is also a social dimension implying that citizens should be able to take full
bene

“ global race for energy sources ”

t of energy liberalisation in terms of reduced energy prices, encouraging energy
savings, boosting job creation and increased welfare on the overall [ 18 ]. The eco-
nomic and financial [ 19 ] drawbacks, as well as the technological barriers have a

bi-faceted nature. Firstly, they consist of insuf cient investments in the development

of low-carbon technologies (including microgeneration systems) in order to obtain
highly ef

cient equipments at relatively affordable prices in a competitive market.
Secondly, starting from the costs of equipments, the drawbacks refer to the inadequate
incentives given by the European Union and its MS for the future owners of equip-
ments (households, SMEs) leading thus to a slow adoption of RES technologies.
The political [ 20 ] and legal [ 21 ] barriers refer to the fact that, as it will be
presented at a later stage, on the one hand the European Energy policies are in
place, but the actual implementation is a lengthy process. On the other hand, the
current legal framework still presents barriers and inconsistencies for the smooth
shift to the new way of producing energy, Distributed Energy Production using the
full potential of RES.