An Integrated Assessment of Energy Technology Dependence in the EU

Abstract

Renewable energy sources (RES) are considered to have a positive impact in European energy security by reducing its energy dependence. Typically, RES are portrayed as unlimited and locally available, and dependency-free in energy security indicators. However, being part of Global Value Chains (GV), energy technologies might present dependencies on foreign actors or regions. This research parts from the idea that energy technology dependence should also be considered when evaluating energy security. Previous studies have provided a methodology to assess the risk of supply bottlenecks on selected value chains, however they are focused on a specific activity within the value chain, or they do not offer a systematic approach that can be applied to other energy technologies. The objective of this research is to overcome these problems by outlining a methodology to identify and assess the risk of dependence along an energy technology’s value chain. The question asked is How can the risk of energy technology dependence be assessed in an integrated way, in the context of the EU’s energy security? Drawing from studies in energy security, GVC and Innovation Studies, this research introduces a conceptual framework to assess energy technology dependence by proposing three dimensions of dependence: product supply, tacit knowledge and codified knowledge. Based on desk research and a case study on the assessment of solar photovoltaics (PV) assessment in Europe, this study presents a value chain analysis with indicators on imports reliance, the EU’s share of global market share and concentration of supply.