Today the expansion of renewables is primarily fueled by governmental support. Without such incentives it is currently difficult to promote renewable technologies on economic grounds. Each European country has individual policies and incentives in place to foster renewable energy supply, complemented by support from the European Union.

The European Commission passed the Renewables Directive in September 2001, establishing indicative targets for the consumption of electricity generated from renewables, with the overall EU target set at 22 percent in 2010. Renewables market drivers are shown below as ranked by impact over the near term.

Rank:
High - Government Incentives and Subsidies for Green Energy
High - EU Targets for Renewables
High - Growing Demand for Green Tariffs
Medium - Green Certificates
Medium - Installation and Generation Costs