The European Commission estimates that meeting the target of 20 per cent. of energy consumption to come from renewable sources (including 10 per cent. biofuels) will cost between £24 billion and £31 billion across the EU in 2020. This is a central estimate of the additional costs to production for the whole of the EU—the number is based on modelling and will be sensitive to assumptions on technology costs, innovation rates, energy prices and carbon prices in the period to 2020.
The UK is considering the European Commission’s analysis and its implications for the UK.