The EU’s latest State of the Energy Union report has shone a positive light on the bloc’s progress towards a carbon-neutral future, pointing to significant advancements in renewable energy production, as well as its efforts to regain control over energy market dynamics, pricing and security concerns.
After a rough few years and some eye-opening events, the European Union’s energy agenda appears to be back on track, with a host of new mandates and breakthroughs paving the way for renewed economic growth and competitiveness in the sector.
RENEWABLES GAIN GROUND
The EU demonstrated its willingness to invest in and promote renewable energy sources at COP28 in Dubai at the end of 2023, where it led the “global initiative to triple renewable energy capacity and double energy efficiency improvements as part of the transition away from fossil fuels”. These goals were endorsed by all Parties present at the United Nations Climate Change Conference or Conference.
Now the 2024 State of the Energy Union report has revealed that, in the first six months of this year, half of the bloc’s electricity came from renewable sources – a record in the EU. Furthermore, wind power has overtaken gas to become the No. 2 source of electricity behind nuclear power.
See more: Renewables take a back seat to nuclear in France’s new energy bill
The uptick in renewable energy sources has also helped lower greenhouse gas emissions in the EU, which have plummeted by 32.5% between 1990 and 2022, according to the report. In the same period, the economy grew by 67%, showing that greener policies have not hindered growth.
Nevertheless, despite these positive findings and trends, the report acknowledges that they alone will not be enough to meet 2030 energy and climate goals at the current rate. Prioritising energy-efficient renovation projects and updating heating systems, the report suggests, are two ways the EU can accelerate the process.
DEMAND FOR RUSSIAN GAS FALLS
Demand for gas fell by an astounding 138 billion cubic metres between August 2022 and May 2024, drastically decreasing the EU’s reliance on Russian gas sources. Due to the drop in demand, it was possible to meet continent-wide winter gas storage goals by 90% by August 2024.
The share of Russian imports has been reduced from 45% in 2021 to 18% as of June 2024. Achieving energy security, if not full independence, has been a keen ambition for EU authorities in recent years, and this shift away from Russian reliance marks a major step toward that goal.
The report also highlights the need for partnerships within the EU energy industry in the face of an increasingly competitive global stage. Industrial alliances such as the European Battery Alliance, European Clean Hydrogen Alliance, Solar PV Industry Alliance, Renewable and Low-Carbon Fuels Value Chain Industrial Alliance, and Alliance on Small Modular Reactors will play important roles.
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