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A Call for a Robust Energy Security Strategy in Europe

In the face of ongoing challenges, including repeated sabotage incidents affecting Baltic Sea cables, devastating storms plunging Ireland into darkness, and the backdrop of conflict in Ukraine, Europe's energy infrastructure is under significant pressure. New supply shocks, primarily driven by instability in fuel imports from Russia, have raised serious concerns over energy security. As the continent strives to decarbonize, with projections showing that by 2050, clean and renewable energy will cover 60% of final energy consumption, a reevaluation of the current energy security framework is vital.

Recent research commissioned by Eurelectric and conducted by Compass Lexecon sheds light on the urgent need for a fresh approach grounded in clean electrification. By reducing dependency on fuel imports, this strategy could mitigate exposure to market fluctuations and fortify resilience against crises.

Shifting Landscape

The European Union’s current energy security strategy was formulated back in 2014, a time when reliance on Russian imports was significantly greater, and renewable energy sources constituted only a minor fraction of the overall energy mix. Today, the dynamics have shifted dramatically. Thanks to advancements in electrifying transportation and heating, EU energy independence is expected to improve significantly, with projections indicating a reduction of import dependency from 60% in 2022 to just 13% by 2050. Moreover, renewables are anticipated to generate 69% of total electricity by 2030, while phasing out Russian oil and gas.

Three Pillars for Future Security

To ensure a secure electricity supply, the study emphasizes the strengthening of three essential pillars:

1. Enhanced Planning: Comprehensive planning is crucial for understanding the complete energy picture. This involves integrating all aspects of the energy value chain, considering external threats, and extending planning horizons to better identify the system's needs.
2. Flexibility: A considerable increase in flexible capacity is necessary to complement variable renewable energy sources. The report estimates that by 2030, 175 GW of new technologies for storage and demand response will be required. Supporting mechanisms will be essential to drive such investments.
3. Functional Markets: Efficient price signals must accurately reflect system requirements and enable consumers to play a role in enhancing supply security by adjusting energy consumption.

Leonhard Birnbaum, President of Eurelectric and CEO of E.ON, noted, "The past year has made it clear that maintaining the status quo in Europe is no longer an option. With the threats facing our sector, ensuring supply security must become a top priority for policymakers and regulators."

The implications of the research suggest that prioritizing these pillars can substantially reshape Europe's energy landscape, fostering a robust, sustainable future. The findings of this study will be formally presented at the upcoming Munich Security Conference.

Conclusion

Eurelectric advocates for a proactive stance in addressing the energy challenges ahead. By adapting strategies to focus on clean electrification, Europe can secure a resilient energy future, reduce reliance on external resources, and contribute effectively to global decarbonization efforts. As Leo Birnbaum concluded, "It won’t be an easy task, but ensuring that Europe has the right vision to meet these challenges is imperative."