The utilization of renewable sources is a key “bet” for the new European Commission. A pan-European network is deemed necessary. But is it possible? It remains unclear whether and in what way the results of the European elections – and especially the noticeable retreat of the Greens in the voters’ preferences – will affect the political decisions of the next European Commission. One thing is certain, however: Better utilization of alternative energy sources is considered a key parameter for achieving the ambitious “climate goals” set by the previous Commission.

Many regions in Europe are rich in renewable energy sources. However, Europe as a whole cannot benefit from increased wind or solar energy production, as there is not yet sufficient capacity to store and transport the energy. The Commissioner for Energy, Kadri Simpson, has pointed out that “today the energy network is considered developed, but in the context of the green transition it is estimated that Europe’s energy needs will double. So we need to modernize our grid so that in the future it is powered by more energy, coming from renewable sources.”

European “diversity” in energy as well

In Northern Europe, but also in the countries washed by the Baltic Sea, wind energy is a main priority. In the sunny South of Europe, solar energy production takes precedence. As Harald Bradtke, director of the Energy Technology Center at the Fraunhofer Institute in Karlsruhe, explains, “These two elements complement each other wonderfully. In the winter we have increased wind energy production, in the summer more photovoltaics…”.

However, the necessary quantities must be stored and transported to where it is needed. Energy reservoirs, acting as reserves, have already been built in Scandinavia, Italy, Austria and Switzerland. But the construction of a reliable European network is delayed. As expert Harald Brandke explains, “this is a huge problem. We are seven years behind, theoretically we should have already built 6,000 kilometers of network.” Previously the EU had considered scenarios for the transfer of solar energy from third countries.

Ecological and… aesthetic objections

The problem for Europe is not only economic. Many react when they learn that power grid poles are being installed in their neighborhood and turn to the courts, resulting in delays in the proceedings. Some believe that their health is at risk, others fear that their property is losing value. The alternative would be to install underground wiring, but this is also not a simple matter.

As Harald Bradke reports, “these wirings are much more expensive and also have some implications for farmers. The soil dries up. At a distance of 20-25 meters from these cables, the farmer cannot grow anything, so he must be compensated accordingly…”.

The EU is aware of all these difficulties. A realistic solution would be co-financing with Community funds, after amending the legislative framework for the Trans-European Energy Networks (TEN-E). According to a recent study by the European Round Bank for Industry, the cost of the necessary investments until 2030 is estimated at 800 billion euros. The amount is huge. But conventional energy also comes at a huge cost, Commissioner Country Simson points out. “Note that in 2022 alone, European consumers paid over €600 billion for fossil fuel imports from third countries,” he points out. “So we may need big investments in renewable energy sources, but conventional sources don’t come to us for free either…”

Solutions for private financing

Of course, there is also the scenario of financing with private funds. An example is the energy interconnection currently being planned between Germany and Great Britain. As the German expert Harald Bradtke argues, “there are insurance companies or pension funds that are looking for safe investments, with yields ranging around 4-6%. But these investments must have a long-term horizon. Let the yield not be so high, as long as it is safe and long-lasting…”.

Edited by: Yiannis Papadimitriou