The energy sector of the European Union (EU) is based mainly on fossil fuels and almost two-thirds of the energy demand is imported. In the future, fossil fuels are expected to strengthen their participation in the European energy balance and imports will amount to 70% of overall energy needs. On the other hand, the development of Renewable Energy Sources (RES) is a central aim of the European Commission's energy policy. RES hold a significant share in the 10 new countries recently joined the EU and the adoption of RES-related policies is of imperative importance for the joint cooperation of the new member states with the EU. This paper includes a review of RES status, related policies and prospects in each of the 10-new member states of EU. (C) 2004 Elsevier Ltd. All rights reserved.