There is a double urgency to transform Europe’s energy system: reducing EU dependance on fossil fuel imports and tackling the climate crisis. EU has important objectives on climate change and the current tensions on energy market suggest to accelerate measures on energy savings, diversification of suppliers, renewables and to replace fossil fuels consumption in industry and transport. Delivering the REPowerEU objectives requires an additional investment of €210 billion between now and 2027.
The new EU energy targets are very ambitious.
The question is if the EU economy could face the transformation required. Moreover, it is not just an economic issue, although the costs are immense for both public finances and consumers and, last but not least, the industry itself (e.g. the automotive industry).
It is above all a question of mental habitat and new consumer behaviors, which no law can impose.
And then there is the need to push research and innovation towards multiple objectives:
- increasing the efficiency of electricity production systems from renewable sources
- producing green hydrogen
- integrating and digitising European energy networks
- increasing efficiency of heating and cooling systems
- accelerate research into thermonuclear fusion power generation systems
Replacing Russia as a European supplier of oil and gas also raises a number of questions.
Today Russia is seen as the enemy not to be financed. Contracts are broken and sales promises are obtained from other countries. Which, mostly like all countries with energy resources, are by their nature subject to permanent instability and therefore in principle not very reliable. So, analysts think that the diversification of supply areas will lead to higher prices, more inflation, economic and social crises, increase in public debt.
For this reason, the European Commission has proposed the REPowerEU Plan, which indicates the objectives and financial means that will be made available to replace fossil fuel consumption in EU.
Achieving the REPowerEU goals requires an additional investment of € 210 billion between now and 2027.