Brussels – Cables in the Baltic repeatedly sabotaged, devastating storms leaving Ireland in the dark, war raging in Ukraine and price shocks caused by Russia’s fuel disruptions: Europe’s energy system is being challenged like never before. Meanwhile, Europe is decarbonizing its economy with clean and renewable power set to meet 60 percent of final energy consumption by 2050. As energy needs evolve, so should Europe’s energy security strategy. A new study by Compass Lexecon on behalf of Eurelectric demonstrates the need for a new approach to energy security based on clean electrification to reduce fuel imports dependence, lower exposure to commodities price shocks, and boost crisis resilience of the energy system.
The EU’s current energy security strategy was adopted in 2014, at a time when countries relied heavily on Russian imports and renewables made up only a small fraction of the overall mix, according to a statement. Today, this picture has fundamentally changed. Energy imports are expected to decrease from 60 percent in 2022 up to 13 percent in 2050, thanks to transport and heating electrification. Renewables are set to generate 69 percent of total power by 2030, and Russian oil and gas will be gradually phased out. These developments call for an integrated power-led security approach.
“The recent year has shown us that business-as-usual in Europe is no longer an option. With the threats faced by our sector, security of supply is becoming an urgent priority that policymakers and regulators must acknowledge.” – said Eurelectric’s President and E.ON CEO Leonhard Birnbaum.
To ensure the security of electricity supply in Europe, the study suggests strengthening three key pillars:
1. Better planning: only by adding the pieces together one can see the full puzzle. Preparedness frameworks should encompass the entire value chain, include all energy vectors, infrastructure, span across longer timeframes and factor in external threats to better identify system needs.
2. More flexibility: massive flexible capacity will be needed to complement variable renewables — 175 GW should come from new electricity storage technologies and demand-side management by 2030. To incentivize investment, capacity mechanisms and flexibility support schemes will be essential.
3. Functioning markets: effective price signals should reflect system needs and allow consumers to contribute to security of supply by adjusting their energy use.
“This is not going to be an easy endeavor. Let’s make sure Europe has the right vision for it,” concluded Birnbaum.
The study will be officially presented at the Munich Security Conference.
English version by the Translation Service of Withub
