EU’s green shift depends on mammoth investment in the energy grid
European Union documents show that the modernisation of Europe’s energy grid this decade will require more than half a trillion euros. As a result, countries will be able to ramp up wind and solar power in order to break free of Russian gas.
Several measures will be proposed by the European Commission to “digitise” Europe’s energy system this week, as well as to help cash-strapped energy firms fighting to keep their heads above water this winter ahead of sky-high gas prices.
As reported by Reuters, the draft plan estimates that 584 billion euros will need to be invested in the electricity grid by 2030 in order to promote the rapid spread of electric vehicles, renewable energy, and heat pumps, as well as the transition from fossil fuels.
Of this, around 400 billion euros would target the distribution grid. Some 170 billion of that would focus on digitalisation, including the so-called “smart grids” that respond faster to local supply and demand fluctuations, helping waste less energy and benefit from cheaper periods.
“Reducing greenhouse gas emissions by 55% and reaching a share of 45% renewables in 2030 can only happen if the energy system is ready for it,” the draft said, referring to the EU’s climate targets.
The EU pays attention to providing funding for cross-border energy projects and has urged countries to channel cash from the bloc’s massive COVID-19 recovery fund into making energy systems more energy efficient. However, EU members are largely responsible for their own national energy policies.
It is predicted that the EU will need to have 30 million zero-emission cars on the roads by 2030, as well as several thousand solar panels on all new homes by 2029 in order to achieve its green goals and quit Russian fossil fuels within the next few years.
In order to make the grid more flexible and adaptable to more renewable energy, investment in grid upgrades and digital energy technologies is essential. It would enable consumers to take advantage of the spare power generated by solar panels and use the electricity stored in their electric cars as a source of energy for their homes.
Despite the absence of legal proposals within the EU’s action plan in terms of cybersecurity in energy and gas networks, the bloc said it would propose new laws next year to address those risks.
Source: Reuters
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