Eurelectric is calling for Europe’s energy security strategy to evolve to meet the challenges facing the system.
A new study demonstrates the need for a fresh approach to energy security based on clean electrification to reduce fuel imports dependence, lower exposure to commodities price shocks and boost resilience.
Eurelectric pointed to an array of challenges facing energy security, including the war in Ukraine; price shocks caused by Russia’s fuel disruptions; damage to Baltic subsea cables, and fierce storms causing power outages in Ireland.
The study, which was carried out by Compass Lexecon, was commissioned by Eurelectric.
Europe is decarbonising its economy with clean and renewable power set to meet 60% of final energy use by 2050.
However, as energy needs evolve, so should Europe’s energy security strategy, Eurelectric said.
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.
Today, this picture has fundamentally changed, Eurelectric said.
Energy imports are expected to decrease from 60% of EU energy supply in 2022 to 13% by 2050, thanks to transport and heating electrification.
Renewables are set to generate 69% of total power by 2030 and Russian oil and gas will be gradually phased out.
Eurelectric said 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,” said Eurelectric’s president and E.ON chief executive Leonhard Birnbaum (pictured).
“With the threats faced by our sector, security of supply is becoming an urgent priority that policymakers and regulators must acknowledge.”
To secure Europe’s power supply, the study suggests better planning, with frameworks encompassing the entire value chain, and for external threats to be factored in to better identify system needs.
The study also said more flexible capacity will be needed to complement variable renewables.
To incentivise investments, capacity mechanisms and flexibility support schemes will be crucial.
Finally, Eurelectric highlighted the importance of functioning markets, saying 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 endeavour,” Birnbaum added. “Let’s make sure Europe has the right vision for it.”