Europeans are calling for a reduction in dependence on fossil fuels, and for investment to achieve this

Brussels – The crises in Ukraine and the Middle East have once again brought one of Europe’s structural vulnerabilities to the fore: its dependence on imported fossil fuels. And while the European Commission aims to transform the EU into the first “electric continent”, the challenge now is, above all, to translate the objectives set in Brussels into concrete policies in the Member States. 

This was the theme of the first edition of “Capital Voices: A policy dialogue on energy security and sovereignty”, an event organised by the strategic consultancy and communications firm FGS Global and facilitated by the French electricity company EDF and the German energy firm E.ON in Brussels to bring together European institutions, national think tanks, and industry to discuss the future of the European energy system. The day was divided into three panel discussions: the first on energy sovereignty and the challenges of electrification; the second gave a voice to national think tanks under the theme “From the capitals to Brussels”; the third focused on the industry’s perspective. 

One recurring theme emerged from the discussion, and one that is becoming increasingly difficult to ignore: how can we reduce our dependence on oil and gas without compromising European competitiveness?  

According to the survey commissioned by Fondapol and the Fondation Jean-Jaurès from Ipsos-bva and presented at the start of the event, based on a survey of 8,000 citizens across eight EU countries, 92 per cent of respondents expect further oil or gas crises to occur. Sixty-two per cent consider Europe to be dependent on imported energy, and 74 per cent are dissatisfied with the energy situation. For 57 per cent, the solution should be to replace oil and gas with electric alternatives, while 63 per cent support replacing fossil fuels with electricity, where possible, within ten years. 

Electricity is already seen as the energy of the future by 66 per cent of Europeans. But this consensus on the goal is at odds with a more practical issue: costs. Twenty-nine per cent of those surveyed say they have cut back on travel and holidays because of energy costs, while 21 per cent have cut back on food spending. And 77 per cent consider the price of electricity to be an important factor in businesses’ decisions on where to locate. 

This is precisely where the plan presented by the Commission on 17 July comes in. The Electrification Action Plan aims to increase the share of electricity in European energy consumption from the current 23 per cent to 46 per cent by 2040, with the aim of reducing the cost of fossil fuel imports by up to €260 billion a year. The plan addresses grids, buildings, transport, industry, and incentives, and complements the revision of the ETS. 

However, for Brussels, electrification does not simply mean replacing one technology with another. “It is not just a question of investment, but also of taxation,” emphasised Miguel Gil Tertre, Chief of Staff to the Vice-President of the Commission, Teresa Ribera, speaking at the first panel of Capital Voices. According to Gil Tertre, the final bill paid by citizens and businesses “also includes network charges, taxes and subsidies for fossil fuels.” And incentives can rapidly change the cost-effectiveness of the alternatives: “An electric car,” he pointed out, “can cost around half as much per kilometre as a petrol car, while a heat pump can reduce your heating bill by up to 60 per cent.” 

The point, therefore, is not merely to produce more clean electricity, but to make it economically viable to use it. This is the prerequisite for the “Electro Continent” ambition to move beyond the Commission’s documents and become a reality for households and businesses.