Shining a light on the EU elections

In this final #FridayFeature of 2023, we are diving into the topic that will be consuming the heart of Europe for most of 2024: the EU elections. Europeans are scheduled to vote on the Members of the European Parliament that represent them in Brussels from 6-9 June in 2024. These elections come every five years and set the strategic direction of travel for Europe, representing one of the largest democratic undertakings worldwide.

In 2019, the result was a Parliament with a strong centre and an historic surge in Green representation following the so-called “Green Wave”. This was followed on by a European Commission President bringing forward the EU Green Deal. Over the past five years, these policymakers have been hard at work on the Green Deal, bringing us the Fit for 55 package to cut emissions to 55% below 1990 levels by 2030, and the eventually upping the ante with REPowerEU following Russia’s invasion of Ukraine and subsequent energy blackmail. Eventually, the objective of the Green Deal is to overhaul Europe’s economy for a net-zero future, with critical targets coming due by 2030.

Today, however, Europe looks a lot different than it did in 2019. Inflation is up and so is the cost of borrowing in the aftermath of the COVID-19 pandemic. Geopolitical tensions have soared, and open warfare no longer seems ridden to history. Security of energy and raw materials to drive the green transition are being threatened, compounding uncertainty around achieving Green Deal targets. The elections in June are therefore circled on the calendars of many Europeans as the policymakers in the next mandate will preside until 2029 when the 2030 deadline is almost up.

The challenges we face and the priorities they call for

Anticipating the crunch, the electricity sector has already been looking ahead. Understanding the challenges we face in the coming five years will be crucial to delivering an energy transition that remains just for Europeans and delivers the promised benefits of electrification. Those challenges, we believe, can be overcome with the right priorities, and those priorities are spelled out in our Manifesto for the 2024-2029 legislative term that we launched yesterday, titled Repowering Europe & Delivering Clean Energy Resilience.

?

Implementation

“Implementation, implementation, implemenetation”. Everyone in Brussels is saying it these days. When Commission President, Ursula von der Leyen tapped Maro? ?ef?ovi? to take over as Chief of the Green Deal following Frans Timmermans ' departure, she said that after successfully getting the legislation in place, the focus of his job would shift to “the successful roll-out of the European Green Deal as Europe's growth strategy”. With 2030 less than six years away, it is certainly the time to get implementing.

Unlocking the needed investments here means getting EU-level legislation adopted at a national level in a timely manner. Only in this way can long-term planning get underway to build out the infrastructure we need to deliver the 55% emissions reduction target. For incoming policymakers then, the impetus is clear: double down on the implementation process of adopted legislation and act on the need for speed.

Electrification

Electricity is by far the most efficient energy carrier, but it only makes up 23% of final energy demand in the EU today. With the Electrification Alliance , we launched our Manifesto back in October, calling for an Electrification Action Plan within the first 100 days of the new mandate with an indicative target of 35% electrification by 2030. We reiterate that call in our own Manifesto too, because it is the time, now or never, to get serious on cutting emissions.

Getting serious about emissions reductions means electrifying processes that currently depend on fossil fuels – also known as electrification. It also means generating more of the electricity we use with clean and renewable sources of energy. Using clean and renewable electricity to run more efficient electric devices not only cuts emissions by doing away with fossil fuels, but also lowers the overall energy demand, enabling society to do more with less. Deploying heat pumps, for instance, could reduce energy demand by two-thirds. It is a no regret option both ways we look at it.

Security of Supply

As more and more comes to rely on electricity, that electricity also needs to become more reliable. The outbreak of war and ensuing energy crisis taught us that we can no longer depend on others for our energy security. Stable prices and a constant supply need to be homegrown, which can only be guaranteed with guaranteed EU strategic autonomy.

At the same time, as we usher in a new energy system – one dependent on increasingly higher shares of variable renewable energy – security of supply also means ensuring supply always meets demand. This makes the case for modern solutions to be integrated into new security of supply approaches: flexibility and storage, and digitalisation for grid management to name a few. It also calls for a technology neutral approach that enables Member States to choose the mix and solutions that best fit their needs, given their situation, and starting points in the energy transition.

Grids

It would not be a Eurelectric publication without the mention of grids. Already, the Commission is taking steps towards improving our grids for a new power system of the future. The EU Action Plan on Grids is proof of that. But more still needs to be done.

More than 80% of additional renewable electricity will be connected to the distribution grid by 2030, meaning that grids need to be modernised at the same rate as our energy mix. Currently, the average age of distribution grids in Europe is 40 years old. Squeezing every bit of capacity out of them will therefore be the first thing we need to do as expansion can take years. This means digitalisation that enables better, more granular management of new electricity flows. However, this does not mean losing sight of the fact that we simply need much, much more wires being hung and laid in the EU over the coming years.

Consumers

What all of this goes towards is providing a world where consumers have access to energy to live their lives and conduct business while lowering the impact on the environment. 70% of the benefits of the energy transition however, depend on consumer action while only around 30% are actively engaged. Empowering people to get involved is therefore vital to reaching decarbonisation targets.

To do this, we need to make sure that all customers can afford sustainable energy. This was a major crack uncovered by the energy crisis leading to shutdowns in energy intensive sectors and putting individuals at risk. Eurelectric answered this crisis calling for consumer protection throughout the most crucial winter months of the crisis, that we prolongated this year as well. Nonetheless, more can be done to draw consumers in, to see how the transition impacts them and encourage them to collaborate with the sector to bring about a just transition for all.

Europe, together

What all these priorities have in common is that they are cross-cutting – they are not siloed issues needing to be addressed individually. This is also the case for the energy transition. Delivering a more affordable, secure and sustainable future for Europeans requires Europeans to work together. No progress will be made in a fragmented Europe. Therefore, as elections approach, it is important to keep in mind that we need a strong, cohesive Union that fosters a well-functioning internal market and wider cooperation to get where we are going. Repowering the EU and delivering clean energy resilience will not happen without Europe together.

This week's edition written by:

Nicholas A. Steinwand, Strategic Communications Officer - Eurelectric

Other stories you might be interested in: