3.1. Criteria for Assessing Countries’ Energy Transition
Many criteria for assessing energy transition can be found in the literature. Most often, these criteria concern:
energy production by source [
29,
31];
the portion of the population unable to adequately heat their homes [
18,
21,
22,
31];
access to electricity [
23,
27];
households with debts for utilities and energy services [
21,
31];
low energy efficiency homes [
21,
31];
Analysing the aforementioned criteria, it is easy to notice that some criteria are interdependent (e.g., productivity and energy intensity). Furthermore, criteria are sometimes used with different names in different studies, but with the same meaning according to the authors’ intentions (e.g., ‘Energy use per capita’ and ‘Electric power consumption per capita’). According to Roy’s coherent criterion family paradigm, redundant criteria should not be used in the decision-making process [
33]. Therefore, applying all criteria encountered in the literature without proper analysis would be a fundamental methodological error. This means, in particular, avoiding duplicating criteria with the same importance or that are directly dependent on each other, and instead choosing independent and unique criteria based on primary data, not derived data that are merely the result of transforming other variables in the set. Another type of redundant criteria does not differentiate between alternatives (countries). An example of such a criterion is access to electricity, as in all EU countries 100% of the population has this access. Such redundant criteria should also be avoided.
A set of criteria should describe the decision-making problem, but data availability is a significant limitation. For example, it is difficult to obtain data for all EU countries on buildings that do not meet specific energy efficiency standards, as many countries have not yet collected such data. Therefore, for this indicator, researchers typically use the similar criterion ‘Households living in energy inefficient dwellings’ or the equivalent ‘Population living in a dwelling with a leaking roof, damp walls, etc.’. Such omissions and substitutions are acceptable because we are dealing with a decision-making model, which is only an approximation of reality, not a perfect representation of it [
34].
Among the essential requirements for criteria, it is also important to note comparability of alternatives across criteria. Due to differences in population between countries, some criteria with absolute values are unsuitable. An example is the criterion related to a country’s energy consumption, as it is obvious that countries with larger populations will consume more energy. Therefore, per capita energy consumption should be compared, rather than absolute consumption values. Similarly, in the case of energy productivity, countries should be compared in terms of PPS (purchasing power standard), not based on the chain-linked volumes to the reference year.
Another important aspect of evaluation criteria is that they should be interrelated. This means they should be consistent and coherent in their meaning. For example, if the criterion ‘Share of RES in gross final energy consumption’ is used, the criterion ‘Primary energy consumption’ should not be used alongside it, but rather ‘Final energy consumption’.
It is also worth noting that the problem of assessing energy transition is closely linked to sustainability, and the assessment criteria should reflect this relationship. Therefore, in accordance with the sustainability paradigm, it is advisable to divide the criteria into economic, social, and environmental criteria. Based on the above assumptions, a set of criteria for assessing energy transitions was defined, consisting of economic, social, and environmental criteria. These criteria are presented in
Table 2.
‘C1—Final energy consumption’ describes energy consumption by end users, such as households, transport, agriculture, industry, etc. This indicator ignores energy losses during distribution and processing, as well as energy consumption within the energy sector itself. It also does not take into account energy carriers used for purposes other than energy generation (e.g., the use of natural gas in chemical production) [
35]. Energy consumption is calculated per capita to enable comparisons between countries with different population sizes. The use of this indicator in the study of energy transition shows a country’s energy needs scaled per capita.
‘C2—Energy import’ shows the percentage share of energy imported from other countries in a given country’s energy consumption. It is calculated by using the energy trade balance (import minus export) divided by the gross available energy [
36]. In our study, this criterion indicates the share of a given country’s energy needs not met by the national energy system.
‘C3—Energy productivity’ measures the amount of economic output per unit of gross energy [
37]. This indicator shows how effectively a given country’s economy converts energy into economics goods. Energy productivity is expressed in PPS, which eliminates the impact of price differences between countries on the result. Consequently, using PPS allows for a reliable direct comparison of countries with different GDP.
‘C4—GDP’ describes the value of the total final production of goods and services produced by the economy during the period under review [
38]. This indicator is expressed relative to the average population in a given year to eliminate the influence of population size on GDP. The use of this indicator in the study aims to capture the potential impact of energy sources used on the economy and to verify the observation made in the Introduction regarding the relationship between GDP and energy consumption.
‘C5—Electricity prices for medium-sized households’ shows energy prices for end users, which are households consuming between 2500 to 5000 kWh (the so-called DC band—an average household, 2 adults and 2 children). These are average national prices from the second half of each year, taking into account all taxes and levies [
39]. Prices are expressed in terms of the PPS to reduce the impact of price differences across countries.
‘C6—Electricity prices for medium-sized non-household consumers’ covers energy prices for end users other than households. Specifically, these are prices for consumers consuming between 500 to 2000 MWh (the so-called IC band—medium-sized enterprises, e.g., large workshops, small production plants, etc.). As with ‘Electricity prices for medium-sized households’, these are average national prices from the second half of each year, taking into account all taxes and levies [
40]. To facilitate comparisons across countries, prices are expressed in terms of the PPS. The purpose of using the C5 and C6 energy price indices in this study is to examine the potential impact of energy sources on energy prices.
‘C7—Population unable to keep home adequately warm by poverty status’ measures the share of the population unable to maintain the required temperature at home due to high energy prices. According to Eurostat, data for this criterion are collected based on a survey as part of the European Union Statistics on Income and Living Conditions. These data are used to monitor poverty and social inclusion in the EU [
41]. Applying this criterion allows us to verify society’s ability to meet its heating needs.
‘C8—Population living in buildings with low energy efficiency’ is based on data on the number of people living in buildings with high energy consumption. This particularly applies to apartments with leaking roofs, damp walls, floors or foundations, or rot in window frames or floors [
42]. This criterion is important because higher energy intensity translates into higher energy demand and the need to generate more energy to heat the building. Energy savings are a key element of the energy transition.
‘C9—Households with energy bill arrears’ determines the percentage of households that were in arrears with utility bills at least once in a given year, including with respect to particular energy bills (electricity, heat, gas, etc.) [
43]. This criterion allows us to verify society’s ability to meet its energy needs.
‘C10—Share of RESs in gross final energy consumption’ shows the percentage share of renewable energy in the total energy consumed by end users, including grid losses and power plant self-consumption [
44]. The purpose of this criterion is to determine the degree of advancement of the crude energy transition, or simply the degree of transition of the energy system from conventional sources to RESs.
‘C11—Domestic net GHG emissions’ measures total GHG emissions, including carbon dioxide, methane, nitrous oxide, and the so-called F-gases. This indicator includes emissions from sectors covered and not covered by the ETS system (Emissions Trading System) [
45]. Only emissions from international aviation and maritime transport, as well as emissions related to LULUCF (land use, land use change and forestry), are omitted, as they are not country-specific (international transport) or a consequence of energy production (LULUCF). Emissions are expressed in CO
2 equivalent per capita, allowing for comparisons between countries with different populations. This criterion partially captures the potential impact of energy sources used on environmental pollution.
Criteria C1–C6 are economic in nature. These are indicators related to finances, economic production, and energy consumption. These criteria are important in the context of examining the impact of the energy transition on the economy, the economics, and the energy system of a given country. An improperly managed energy transition, without investment in modernizing transmission grids and building energy storage facilities, can result in a loss of energy system stability due to the irregular nature of energy generated from RESs. In turn, the lack of stability in the energy system can negatively impact the economy. If the energy transition process is implemented correctly and thoughtfully, the economy should also thrive in the long term.
Criteria C7–C9 explicitly address the potential occurrence of energy poverty related to the inability to meet energy needs. The EU’s energy transition process is linked, among other things, to significant investments in renewable energy production, the costs of the ETS system, and the taxation of conventional energy sources. All this results in high energy prices for consumers and causes consumers living in energy-intensive buildings to face the phenomenon of energy exclusion, which is a consequence of an improperly conducted energy transition process.
Criteria C10–C11, in turn, describe the potential benefits of the transition for the environment. The consumption of conventional sources, such as fossil fuels, causes high GHG emissions and the depletion of non-renewable resources. In turn, the level of GHG emissions directly impacts environmental pollution. Therefore, a greater share of RESs in energy production and consumption is beneficial from an environmental perspective, and a properly implemented energy transition should bring positive environmental effects and reduce pollution.
3.2. Data Sources and Pre-Processing Methods
Data on EU countries corresponding to individual assessment criteria were taken from the Eurostat database [
35,
36,
37,
38,
39,
40,
41,
42,
43,
44,
45]. Most of the data included in the study are classified by Eurostat as sustainable development goals indicators (C1–C3, C7, C10, C11), which emphasizes the importance of these data in assessing the energy transition in the context of SDG implementation. After collection, the data were appropriately processed into a time series covering the years 2013–2024. The starting year was the date of accession to the EU by the most recent country (Croatia), while the ending year was determined by the availability of the most recent data. It should be noted that for criteria C1–C3, C8, C10, and C11, the latest available data related to 2023. Therefore, for these criteria, the dynamics of the 2013–2023 time series were examined and a forecast was generated in the form of a new time series for the years 2024–2027. For the remaining data extending to 2024, the dynamics of change in the 2013–2024 period were examined, and a forecast was generated for 2025–2027. This hybrid approach maximized the availability of the most up-to-date data for forecasting purposes. A special case was criterion C8, for which data for all countries were missing for 2021 and 2022. To maintain the completeness of the 2013–2023 time series for this criterion, data for 2021–2022 were generated based on linear interpolation from data from 2020 and 2023.
Time series for forecasts were generated using chain measures of dynamics. They capture changes in the level of a given phenomenon in a given period compared to the previous period [
46]. The dynamics of change between individual annual periods were determined as the ratio of the phenomenon’s values in two consecutive years using (1):
where
—
-th dynamic chain index;
—value in year
; and
—value in the preceding year. In this way,
indices were obtained for
periods (years). The change dynamics were then averaged into a composite index by calculating the geometric mean of the
indices according to Formula (2):
The average dynamics of change was the basis for calculating forecasts for subsequent periods of time (years), in accordance with Formula (3):
In addition, confidence intervals were determined to assess the forecast reliability. For this purpose, the sample standard deviation
was calculated according to Formula (4):
Then, based on the average dynamics of change adjusted for the standard deviation, the optimistic and pessimistic forecast variants were determined according to Formula (5):
where
denotes the z-score (standard score) for a confidence level of
. It should be noted that the symbol ‘
’ denotes the use of the ‘minus’ (−) operator for the optimistic forecast variant and preferences towards ‘min’, as well as for the pessimistic forecast and preferences towards ‘max’. In the case of an optimistic forecast and preferences towards the ‘max’, as well as for a pessimistic forecast and preferences towards ‘min’, the ‘plus’ (+) operator was used. The optimistic and pessimistic forecast variants constituted the boundaries of the confidence intervals.
The development of forecasting time series allowed for the projection of the future progress of the energy transition in EU countries for 2027. In turn, relying on the most up-to-date dataset for 2023 allowed for a current assessment of the energy transition. Therefore, both the 2023 data and the 2027 forecasts were used as the criteria for assessing the energy transition. The assessment covered 27 EU countries, and the tool used was an MCDA method called PROSA-G.
3.3. PROSA-G MCDA Methodology
The PROSA-G method is an MCDA method belonging to the PROSA family of methods, based on the classic PROMETHEE method. The entire PROSA family is used to analyse discrete decision-making problems where a set of alternatives is considered. Alternatives are considered in terms of criteria belonging to the set . Furthermore, in the PROSA-G method, criteria belonging to set are assigned to groups, which introduces a hierarchical relationship between the -th group and the -th criterion. The PROSA-G procedure consists of 7 stages:
Determining deviations based on pairwise comparisons.
Application of preference functions.
Calculation of single criterion net flows.
Calculation of net outranking flows.
Analysis of the sustainability/compensation relationship of criterion groups.
Determining weighted mean absolute deviations for criterion groups.
Calculating PROSA-G net sustainable values.
Steps 1–4 were taken directly from the PROMETHEE II method, based on a single criterion net flow [
47]. In turn, steps 5–7 expand the method toward more sustainable solutions, maintaining a greater balance between the individual sustainability dimensions (economic, social, environmental). In essence, PROSA-G, like other PROSA methods, rewards consistency in assessments and preferences between criterion groups and penalizes inconsistencies and outliers. It also allows for adjusting the balance between groups, influencing the expected degree of sustainability of the solution [
48].
Determining deviations based on pairwise comparisons.
In this step, all alternatives from set
are compared pairwise with respect to the subsequent criterion
, and for each such comparison, the deviation
is determined according to Formula (6):
where
denotes the evaluation/performance of the alternative a with respect to criterion
.
Application of preference functions.
For each
-th criterion, preference functions
are selected and used according to the
PROMETHEE method. They allow for transforming the deviation
into the normalized preference value
, according to Formula (7):
Calculation of single criterion net flows.
Based on the preference value
, for each alternative—with respect to each criterion—a single criterion net flow is calculated using Formula (8):
where
denotes the preference flow of alternative
over every other alternative for the
-th criterion, and
denotes the number of alternatives. The values
allow us to rank the alternatives separately for each criterion.
Calculating net outranking flows.
Net outranking flow for each alternative is determined based on Formula (9):
where
is the weight of the
-th criterion, with the weights being normalized (
).
Weight normalization is performed according to Formula (10):
The obtained
values are also the final solution according to the PROMETHEE II method.
Analysis of the sustainability/compensation relationship of criterion groups.
In the PROSA-G method, at the beginning of this stage, it is necessary to calculate the efficiency of the criterion groups by normalizing the given group, according to Formula (11):
where
denotes the number of criterion groups,
denotes the
net flow
of alternative
calculated for the
-th criterion group, and
denotes the number of criteria in the
-th group. Based on the value of
, the sustainability/compensation of individual criterion groups can be determined.
The relation of being sustainable (≈) takes place when
and means that alternative
is sustainable with respect to the
-th group of criteria.
The relation of being compensated (Cd) takes place when
and means that the low performance of the criteria contained in the
-th group is compensated by another group/groups ().
The compensating relation (Cs) takes place when
and means that the high performance of the criteria contained in the
-th group compensates the lower performance of other groups ().
Determining the weighted mean absolute deviations for criterion groups.
The mean absolute deviation value describes the balance of alternative
with respect to individual criterion groups. This value is determined according to Formula (12):
where
is the sustainability/compensation coefficient for the
-th group of criteria, taking the values
. A larger value of the
coefficient favours alternatives that are strongly balanced with respect to the
-th group of criteria, thus reducing the degree of compensation for this group. In turn,
is the weight of the
-th group of criteria, calculated as the sum of the weights of all criteria belonging to the
-th group, according to Formula (13):
Calculation of PROSA-G net sustainable values.
PROSA-G net sustainable value is calculated using Formula (14) [
17]:
As mentioned earlier, PROSA methods (including PROSA-G) are dedicated to solving decision-making problems in the context of sustainability. This is achieved by incorporating a strong sustainability paradigm into the method’s algorithm. Steps 5–7 are specifically responsible for this. Step 5 of the PROSA-G method allows for determining the sustainability/compensation relationship and the balance between the economic, social, and environmental dimensions of the decision-making problem. In step 6, the deviation of individual sustainability dimensions from the overall score is determined. Furthermore, in this step, the sustainability/compensation coefficient is applied, which determines the strength of the impact of a given dimension’s sustainability on the overall score of the alternatives. Finally, in step 7, based on the weighted sum of deviations from individual sustainability dimensions, the PROMETHEE method score is adjusted and the final assessment of the alternatives—the so-called PROSA sustainable value—is calculated.