EU renewable energy: factors and strategies for attracting foreign direct investment

Abstract

The article examines the attraction of foreign direct investment (FDI) to the renewable energy sector (RES) of the EU. The research aims to identify the factors and evaluate possible strategies for attracting FDI to the EU renewable energy sector. The author assumes that, with rising costs of Chinese equipment imports and shifts in US energy policy, the EU will prioritize diversifying material and equipment suppliers to attract FDI. The research methodology is based on a SWOT analysis using a correlation matrix to forecast and evaluate EU strategies. The results of the study allow us to identify the key factors influencing the inflow of FDI, as well as to forecast and evaluate four EU strategies to attract FDI. The SO strategy involves the transformation of the legal framework for RES regulation. The WO strategy is aimed at developing a network of partners and investors for joint projects implementation. The ST strategy is focused on the development of existing EU deposits, considering the cluster differentiation of countries by the level of RES usage. The WT strategy stands for the development of hybrid energy projects. The hypothesis is partially confirmed: in the medium term, the EU will diversify imports, but probable changes in conditions will lead to the use of strategies, described by the author. These results may be interesting for research institutes, organizations and companies specializing in renewable energy and cooperation with the EU, as well as for investors developing investment strategies in the EU renewable energy sector.