Differentiation of the Level of Sustainable Development of Energy Markets in the European Union Countries

Abstract

The economic development of the EU’s countries depends on stable and permanent access to various energy sources. The integration of European energy markets is a long-term process. Each member country has a different energy balance, energy resources and electricity generation technologies. Therefore, comparing Member States with one another is a complex task. The article deals with organizing the set of objects in multidimensional spaces of variables from the point of view of a certain characteristics that cannot be measured in a simple way, i.e., the relative level of the development of energy markets. The following diagnostic variables were adopted for the analysis: consumption of electric energy generated from renewables per capita (TWH/person), hard coal consumption (million tons/person), greenhouse gas emissions per capita, available for final consumption gigawatt-hour per person, final energy consumption thousand tons of oil equivalent (TOE) per person, petroleum available for final consumption (gigawatt-hour), natural gas (terajoule gross calorific value-GCV) per person, energy intensity of GDP (kilograms of oil equivalent (KGOE) per thousand euro, import dependency %. The article draws upon the cluster analysis, which uses the methods and techniques that enable to extract such objects (countries) from the data set, which would be similar to each other and combine them into groups. The purpose of the article is to examine and discus the diversity of Member States on the level of development of energy markets taking into account the specific situation of Poland. The presented model has the potential to be used at the level of enterprises from various industries to evaluate the level of sustainable development. The algorithm modification will only require the selection of available diagnostic variables describing the given enterprise.