DAUGU, South Korea, Oct. 16 (UPI) -- The European market needs to be flexible enough to make room for all forms of energy to keep the industry from going broke, analysts said in South Korea.
Manuel Baritaud, senior electricity analyst at the International Energy Agency, told delegates gathered at the World Energy Congress in Daugu, South Korea, the European energy market may need an overhaul.
"If we keep current [market] design, we won't achieve targets of decarbonization," he said Wednesday.
European leaders are debating climate policies for 2030 that would expand on goals for emission reductions and renewable energy use for 2020.
Analysts at WEC said subsidies have created lower energy costs, which means some energy providers might not be able to get a return on their investments. Hans Schweickhardt, chairman of Alpiq Holdings in Switzerland, said European subsidies for renewable technologies could bankrupt the entire industry.
"The honeymoon is over [for renewable resources]," he said.
The IEA said in its medium-term renewable energy market report, published in June, that renewable energy resources like wind, solar and hydroelectric power will account for nearly 25 percent of the global power mix by 2018, greater than that expected from natural gas and nuclear power.
