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Europe's Energy Security: A Call for Clean Electrification

In recent years, Europe has faced unprecedented energy challenges, from the sabotage of cables in the Baltic Sea to devastating storms that have plunged regions like Ireland into darkness. Additionally, the ongoing conflict in Ukraine and fluctuations in energy prices due to disruptions in Russian fuel supplies have significantly strained the continent's energy system. As a response to these mounting crises, Eurelectric has made a strong case for the necessity of a comprehensive energy security strategy that harnesses clean electrification.

A new study conducted by Compass Lexecon at the behest of Eurelectric highlights the urgent need for a fresh approach to energy security, one that reduces dependence on imported fuels, minimizes vulnerability to price shocks, and enhances resilience in times of crisis. The existing EU energy security strategy, adopted in 2014, was formulated during a time when reliance on Russian imports was high and renewable sources accounted for a minimal portion of Europe’s energy mix. However, the landscape has changed dramatically.

As the electrification of sectors like transportation and heating progresses, it is forecasted that imported energy, which constituted 60% of the EU's energy volume in 2022, will plummet to merely 13% by 2050. The study outlines ambitious goals: by 2030, renewables should account for 69% of total electricity generation, and imports of oil and gas from Russia should be phased out entirely from the energy mix. Given these developments, there is a pressing need for an integrated, electricity-based security strategy.

Leonhard Birnbaum, President of Eurelectric and CEO of E.ON, emphasized the dire importance of reevaluating energy strategies to address the current climate, stating, "Last year proved that a ‘business as usual’ approach is no longer viable for Europe. Given the threats to our sector, supply security must become a critical priority recognized by policymakers and regulators."

To secure Europe’s electricity supply, the study recommends reinforcing three key pillars:

1. Enhanced Planning

A holistic planning framework that encompasses the entire value chain is vital. This framework should incorporate all energy sources and infrastructure, account for longer timelines, and consider external threats in order to better recognize system requirements.

2. Flexibility

A significant flexible capacity will be crucial to complement the variable nature of renewable sources. It is projected that by 2030, 175 GW must be derived from new storage technologies and demand-side management. Capacity mechanisms and incentive programs promoting flexibility will be instrumental in catalyzing investment.

3. Functional Electricity Markets

Efficient price signals must reflect the energy system's needs, empowering consumers to adjust their energy usage to contribute to supply security.

Birnbaum noted that while these objectives may prove challenging, it is imperative that Europe establishes a robust vision moving forward. The findings of this crucial study will be presented at the Munich Security Conference.

As Eurelectric advocates for the electricity sector's interests, its overarching mission encompasses enhancing the industry's competitiveness, ensuring effective representation in public policy discourse, and promoting the pivotal role of electricity in advancing society. The time for action is now, and Europe stands at a pivotal crossroads in defining its energy future.