Investigating the viability of critical raw materials in sustainable development of renewable energy sources in EU

Abstract

Renewable energy resources are one of the key instruments for sustainable development. However, renewable energy generation depends more on critical raw materials for their components. The world’s production and processing of these materials are mostly located in a few countries headed mainly by China. When the critical raw materials costs are considered, as importers of these minerals, EU countries face different levels of solar and wind energy generation efficiencies. With SE DEA, the viability of critical raw material role on renewable energy generation is analyzed. Results shows that South European countries have higher efficiency levels both in PV and wind. Italy is an example of a super-efficient country which owes its efficiency to rich natural resource potential, coupled with lower critical raw material costs and higher recycling rates. Austria is another example for being efficient without rich natural resources but with a good control of inputs; investment, labor and CRM costs. Austria’s and Italy’s populous and strong industrial manufacturing clusters’ effect on material costs and recycling projects are increasing their ability to continue to deploy renewable energy resources efficiently. Overall, the critical raw materials are proved to be an important input for sustainable development of renewable energy sources.

Keywords

• critical raw materials
• wind energy
• solar energy
• dea
• energy generation efficiency