Global market scenario is increasingly challenging in 2022. After over 2 years of pandemic, lockdowns, supply chain constraints, and now a Russian invasion in Ukraine, fossil fuels prices spiked, and geopolitical map changed drastically. It has made several countries re-think their long-term partners, new strategies to diversify the energy source mix moving towards clean and renewable energy, and increase national security with lower dependence on fossil fuels from other countries.
Looking at European Union current market, EU produced 42% of its own energy meanwhile imported 58%. Evaluating the overall energy mix, petroleum products and natural gas represent 58% of the source mix, followed by renewable energy sources with 17.4%, and nuclear at 12.7%. Facing this reality and preparing for the future, The European Commission introduced an energy mix draft plan to address these numbers for their 450 million citizens.
This new draft plan addresses three main points. The first point refers to a short-term plan to reduce natural gas from Russia, replacing it by gas from other countries. It is important to highlight EU already expects 30% gas demand reduction by 2030, being replaced by 20 million tonnes of renewable hydrogen which could be used in the industry.
The second and third points go a little further as they imply a behavior change by end-users and general population. And for this reason, they are extremely important in shaping the future. It requires a day-to-day behavior change by everyone. The second point proposes to increase renewable energy from current 17.4% to 45% of the energy source mix by 2030. Solar and Wind energy sources play a big role with simplified project permits, where it would also integrate to new factories, buildings, houses heating systems instead of only gas.
Lastly, the third point refers to energy management in its core. General energy consumption is as important as the country’s capacity to generate and distribute electricity efficiently. Therefore, society behavior changes for consciously using electricity, reducing waste and unnecessary usage/loses could bring a 13% reduction in consumption by 2030. It is not an easy task, however, to shape the future using renewable energy sources, reduce dependence on imported fossil fuels from authoritarian countries, and increase national energy security must pass through these behaviors and mindset changes. Almost forgot, it also has a price: European Commission estimates extra 210 billion euros to roll this plan out.
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