The European Union aims to meet 20 percent of its energy demands through renewable energy by 2020.
European Energy Commissioner Gunther Oettinger told lawmakers in Brussels that the 20 percent target was achievable with the right policies in place.
"We have to invest much more in renewable energy and we need smart, cost-effective financing," he said in a statement. "If member states work together and produce renewable energy where it costs less, companies and consumers and the taxpayer will benefit from this."
Further technology sharing and joint collaboration could help the European energy targets along, the energy commissioner added. If the measures are successful, the European community could save about $13 billion each year.
The European Commission will examine the effectiveness of energy cooperation in 2014.