While Europe is fighting climate change, a new crisis has emerged. High gas prices and Russia’s invasion of Ukraine are driving energy prices to historic levels and massively contributing to a year-on-year EU inflation of 40%. Yet, there is a silver lining: an accelerated energy transition and electrification can get Europe out of these two crises.
– We must accelerate the electrification of our economy to regain independence, enhance energy security and fight climate change – said Jean-Bernard Lévy, Eurelectric’s President. Today, the electricity industry unveils its recommendations for how to ensure that the EU become energy independent while decarbonising the economy.
Raise the game on clean and renewable power generation
The power sector is heading towards having 85% of EU electricity carbon-neutral by 2030. Yet, incremental additions of renewable capacities are not enough to install between 550 GW and 1268 GW (RePowerEU) of green energy. Fast-tracked permitting for renewables and a skilled workforce are essential to ensuring this transition.
Electrify everything that can be electrified
Electrification is undeniably the optimal solution to tackle the energy and climate crises. It is essential to fast-forward dramatically stagnating electrification rates and bolster the deployment of heat pumps, electrolysers, smart charging infrastructure and storage solutions.
Nearly 1200 bn are EUR needed by 2030 to install the necessary clean energy capacity and ensure that grids can optimally support a carbon-neutral, decentralised and electric future. Yet, investors face a challenging market: distortive wholesale market interventions, “clawback” mechanisms and retail price caps deter investment in the energy transition and harm security of supply. We must safeguard the integrity of the energy market.