The European Union wants to increase electricity production from renewable sources to 45% by 2030. But if it intends to stick to this plan, it will have to overcome the current dramatic rise in energy prices. Otherwise, he will have to back down from his goal.
War as a barrier
The biggest obstacle to the green transformation of the EU energy sector is the dramatic rise in the price of natural gas. This was to serve as a transitional source to completely clean energy. However, the war in Ukraine has caused natural gas prices to rise several times in less than a year, and even after the recent cheapening on European exchanges, the price is about three times higher than a year ago.
The end of cheap electricity
This is a serious crack in the green plan. “This whole thing completely changes the dynamics of implementing this plan, because you would have to generate electricity using very expensive sources,” David Swindin, head of Cubico Sustainable Investments, which focuses on investing in and building renewable energy sources, told Reuters.
He said Europe must realise that the era of cheap electricity is over. At least until Russian gas can be replaced with gas from other countries or until such a volume of investment in new sources is made that the supply of electricity on the market increases significantly.
