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A New Era in Energy Security for Europe

Recent stability threats in Europe—ranging from sabotaged cables in the Baltic Sea to devastating storms darkening Ireland and ongoing warfare in Ukraine—highlight urgent vulnerabilities in the region's energy infrastructure. These situations are exacerbated by fluctuations in fuel prices due to halted imports from Russia.

Against this backdrop, Eurelectric is advocating for a comprehensive strategy focused on clean electrification as a means to reconfigure Europe’s energy paradigm. According to a new study commissioned by Eurelectric from Compass Lexecon, a shift is necessary to achieve a resilient and sustainable energy supply by 2050, with an emphasis on renewable sources. Currently, it is projected that renewables will satisfy over 60% of final energy consumption by that time.

The Current Energy Landscape

Since the EU's energy security strategy was established in 2014, significant changes have unfolded. At that time, reliance on Russian imports was substantial, while renewable sources barely made a dent in the energy matrix. Fast-forward to today, and forecasts suggest that energy imports will plummet from a staggering 60% in 2022 to just 13% by 2050, largely through the electrification of heating and transportation systems. This evolution mandates a fresh approach to energy security focusing on electrification.

As Leonhard Birnbaum, CEO of E.ON and President of Eurelectric, states, “The past year has shown us that continuing with the current model is no longer an option. Energy security has become an urgent priority that policymakers and regulators must heed.”

Key Pillars for Energy Security

Eurelectric’s study delineates three fundamental pillars to fortify energy security in Europe:

1. Enhanced Planning: Integrating all elements of the energy value chain—from diverse energy vectors to infrastructure—is essential. Enhanced planning should be long-term and proactive, taking into account external threats, to comprehensively understand system needs.

2. Flexibility: With variable renewable energy sources filling a significant portion of the energy mix, Europe will need an additional 175 GW of flexible capacity by 2030. This translates to a strong incentive for investments in new storage technologies and demand management solutions. Mechanisms that promote capacity and flexibility schemes will be pivotal in attracting necessary funds.

3. Efficient Markets: It is critical to establish price signals that accurately reflect system needs, encouraging consumer participation in maintaining supply security through adjusted energy usage.

Birnbaum concludes, “This will not be an easy challenge, but we must ensure Europe has the right vision to tackle it.” This study will be formally introduced at the Munich Security Conference, highlighting the pressing need for a fortified response to Europe’s energy precariousness.

Conclusion

As Eurelectric represents the collective interests of the European electricity sector, the call for a well-structured, clean electrification strategy underscores the importance of renewable energy in achieving a stable and secure energy future for Europe. The organization aims to enhance industry competitiveness, advocate effectively in public matters, and promote the crucial role of electricity in societal advancement.