This graduate work deals with the analysis of cause-and-effect relationships between economic growth and development, i.e. macroeconomic indicators and consumption of renewable energy sources in 28 European countries during the period from 1997 to 2015, using advanced methods of panel data analysis. In the theoretical part of the paper, the importance of energy as a fundamental driver of economic development is emphasized, with special emphasis on the transition towards renewable energy sources. Various economic models, such as growth models that include renewable and non-renewable energy sources, point out that investment in renewable sources can ensure sustainable economic growth in the long run. The transition to renewable energy sources allows countries to reduce their dependence on fossil fuels, increase energy security and stimulate technological progress, which is the key to a long-term economic-ecological balance. The goal of the research was to determine how key economic indicators, such as GDP growth, import of goods, investment sand final consumption, affect the consumption of renewable energy sources. To examine these relationships, econometric methods such as the Granger causality test, the Generalized Method of Moments (GMM) and the Arellano-Bond test were applied, which enabled an in-depth analysis of the dynamic relationships between the variables. The research results showed statistically significant two-way causal relationships between energy and economic variables. These results indicate a strong interdependence between economic growth and consumption of renewable energy sources. Further analysis using the GMM method confirmed the significant influence of the selected macroeconomic factors on the consumption of renewable energy sources, while the Arellano-Bond test showed the absence of serial correlation in the models, which confirms the consistency and reliability of the obtained results.