The twin challenges of energy security and sustainability have never been more pressing for Europe. As the continent works to reduce its dependence on Russian fossil fuels while simultaneously pursuing ambitious climate goals, an integrated approach combining energy sovereignty with circular economy principles offers a compelling path forward.
The scale of the challenge
The numbers are stark: Europe needs to reduce its fossil gas consumption by 1200 TWh by 2027 to avoid 80% of today’s Russian gas imports. This transition requires a massive build-out of renewable energy infrastructure – the EU will need approximately 2.2% of its total land area (roughly equivalent to Sweden’s size) for solar and wind installations to achieve climate neutrality by 2040. However, this energy transition creates its own sustainability challenges that need to be addressed through circular economy principles.
Circular economy: A key enabler for energy sovereignty
The renewable energy sector, particularly solar PV, presents both challenges and opportunities for circular economy implementation. Currently, recycling costs remain higher than landfilling, primarily because PV recycling solutions are relatively new and most systems haven’t reached end-of-life yet. However, existing commercial recycling facilities can already recover between 80-95% of module materials, and research is actively improving both recovery rates and quality of recovered materials.
The industry is adopting several key strategies:
1. Design and Manufacturing
• Moving away from toxic materials and critical raw materials
• Implementing designs that enable easier component separation
• Reducing waste in production processes
2. Extended Lifespan
PV modules are engineered to withstand harsh conditions for up to three decades, showcasing remarkable durability. However, this same durability creates challenges for recycling processes. Despite this:
• Many modules can be reused through established marketplaces
• Repair and refurbishment can extend operational life
• Research is advancing on new recycling technologies
3. End-of-Life Management
Commercial recycling facilities are operating at scale in several countries, with costs decreasing over time. This infrastructure is crucial because:
• It reduces dependence on raw material imports
• Creates domestic sources of materials
• Minimizes environmental impact
Strengthening sovereignty through regional cooperation
The EU has developed robust frameworks for energy cooperation with its eastern neighbors, particularly through:
• The Energy Community, which extends EU energy market principles to neighboring countries
• The EU-Moldova High Level Energy Dialogue, which has conducted five rounds of consultations on crisis support and energy reforms
• The Ukraine Energy Support Fund, which has provided over €400m in support by December 2023
These frameworks have yielded concrete results:
• Ukraine possesses Europe’s largest gas storage capacity (30 bcm), with EU companies already storing approximately 2 bcm
• Ukraine and Moldova’s electricity grids are now synchronized with the EU system through ENTSO-E
• Moldova has achieved complete independence from Russian gas purchases through diversification
• Ukraine could potentially produce up to 19.5m tonnes of green hydrogen annually – twice the EU’s 2030 production plans
Making circularity work for sovereignty
To maximize these opportunities, Europe should:
1. Invest in Domestic Manufacturing
• Scale up European solar PV manufacturing across the entire value chain
• Develop recycling infrastructure in parallel with deployment
• Create resilient local supply chains
2. Standardize Design Requirements
• Implement mandatory eco-design principles
• Ensure products are repairable and recyclable
• Reduce reliance on critical raw materials
3. Build Robust Recycling Infrastructure
• Support the expansion of commercial recycling facilities
• Invest in advanced delamination technologies
• Create efficient collection systems
4. Deepen Regional Cooperation
• Strengthen existing frameworks like the Energy Community
• Support neighbors in implementing EU energy regulations
• Develop integrated energy markets
Looking ahead
The transition to renewable energy presents an opportunity to build both energy sovereignty and circular economy principles into the foundation of Europe’s energy future. The EU has already created strong frameworks for cooperation with its neighbors and is developing the necessary recycling infrastructure. While challenges remain, particularly in recycling costs and technology, ongoing research and increasing scale are steadily improving the situation.
This transition requires significant investment and coordination, but Europe has already demonstrated its ability to rapidly transform its energy system – reducing Russian gas imports from 41% to 8% between 2021 and 2023. By applying the same determination to building a circular renewable energy sector, Europe can create an energy system that is not only clean and independent but also sustainable in the long term.
Success will require continued commitment to both energy sovereignty and circular economy principles, supported by strong regional cooperation and investment in domestic capabilities. The frameworks are in place – now it’s time to scale up implementation.
