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Renewable energy plays an important role in the future energy framework of the European Union. The European Union will reach a 20% share of renewable energy in total energy consumption and increase energy efficiency by 20% by 2020. Smart grids will be the backbone of the future electricity network for integrating the high penetration of renewable energy resources. The plans and status of renewable energy resources development and energy policy in Europe are introduced in this paper. The development of smart grid technologies in the European Union is also discussed. The role of Denmark, one of the leading countries for developing renewable energy technologies and using renewable energy resources has been emphasized in this paper.