The first ever genuinely global energy crisis is currently happening. And since Europe is at the center of the upheaval in the energy market, the International Energy Agency has warned about this danger for many months.
There are grave concerns that millions of European families could not pay to stay warm this winter due to power shortages and rising natural gas costs. Many into energy poverty in the heat of Russia’s invasion of Ukraine are highlighting the risks of relying solely on methane gas produced there.
Lack of natural gas, which in the EU in 2019 accounted for 22% of power output, is the most apparent cause of the energy crisis. But the European Union (EU) can take practical steps to resolve the current crisis and prevent others in the future. This article covers Europe’s five crucial power generation strategies for Europe to avoid a gas shortage.
Russia’s role in Europe’s natural gas crisis:
Russia’s involvement in it has been obvious from the start of Europe’s natural gas crisis. Russia directly provides natural gas to the EU through the Nord Stream pipeline. Around 45 percent of the EU’s gas imports and nearly 40 percent of its total gas consumption in 2021 were covered by the 155 bcm imported from Russia.
However, Russia has reduced exports, raising costs and sparking shortage concerns. Russia argues that the reduced supply results from a seasonal shift that directs more natural gas into storage caverns. The IEA noted that Russia was preventing a sizable volume of gas from reaching Europe five months before Russia’s invasion of Ukraine in September 2021.
Five crucial Energy generation strategies for Europe to avoid a gas shortage:
It will be challenging to decrease dependency on Russian gas. It will take a coordinated and consistent policy effort across many industries and a better international dialogue on energy markets and security. There are numerous connections between Europe’s policy decisions and overall global market balances.
Increasing global cooperation with alternative pipelines, LNG suppliers, and other significant gas importers and consumers will be crucial. Effective implementation also depends on governments, industry, and consumers having clear communication channels.
Municipalities may take the lead in the region’s dramatic energy transformation by using the following five power generation strategies.
Build financial capital
Municipalities require more significant finances to accomplish large-scale reforms, and too frequently, financing is widely discussed nationally. The EU member states must dedicate 37% of the €672.5 billion Recovery and Resilience Facility to advancing climate goals, as agreed by the European Commission to invest €1 trillion in sustainable investments.
Implementing power generation measures to address the energy problem quickly and successfully depends on expediting flows directly to communities. Additionally, innovative business models like product-as-a-service can advance additional economic and environmental benefits while addressing difficulties with balance sheets and public debt.
Reduce gas usage in the power sector:
Gas storage is essential for balancing seasonal demand fluctuations. It acts as insurance against unexpected circumstances that could lead to price spikes, such as increases in demand or supply shortages. When there are geopolitical conflicts, gas storage security is even more valuable.
The narrow seasonal price gaps in European gas markets do not offer enough reason to inject storage ahead of the heating season in 2022–2033. The best use of all storage capacity in the EU would make possible by a standardized approach to minimum storage requirements for commercial operators in the EU’s single gas market.
It is possible to temporarily boost coal and oil-fired generation while speeding up the deployment of low-carbon energy sources. The EPA has unveiled a remarkable plan to create the first-ever carbon emission standards for the country’s power generation.
The Clean Power Plan provides a “best system of emissions reduction” based on four components that work together to improve the effectiveness of the country’s energy grid. It also reduces reliance on carbon-intensive coal-burning power plants.
Additionally, the EPA suggested carbon emission reduction targets for each state, including an interim goal (calculated as an average over the ten years from 2020 to 2029) and a long-term target in 2030.
Promote the Use of Renewable Energy Sources
In the long run, we might be able to reduce our dependency on natural gas if we encourage elected officials to increase their support for renewable energy.
According to German Economy Minister Robert Habeck, the conflict in Ukraine and the suspension of the massive Nord Stream 2 gas pipeline between Russia and Germany could accelerate the growth of renewable energy sources.
The International Energy Agency’s (IEA) study on reducing Europe’s reliance on Russian gas lists ten recommendations, one of which is accelerating the deployment of wind and solar energy.
Municipalities can encourage and provide incentives for consumers to install rooftop solar photovoltaics through short-term financing mechanisms. According to the IEA, a €3 billion grant covering 20% upfront costs could boost the investment rate.
The EU’s output from these renewable sources is anticipated to increase by over 100 terawatt-hours (TWh) in 2022. It is more than 15% from 2021 due to record solar PV and wind power generation capacity additions.
Home Insulation:
Our use of gas won’t decrease overnight, even if we start investing billions right away in wind, solar, and other renewable power generation resources. However, there are things you can do on your own to save money on gas.
It can make a significant difference if your home is adequately insulated. According to the environmental advocacy group WWF, “today’s most energy-efficient structures use 75% less energy than the typical home or office, saving you a significant amount of money.”
In a third of households, the heat might escape through un-insulated attics or cracks in floorboards; WWF advises contacting an expert to analyze your energy usage for older homes.
An effective technique for reducing emissions in the built environment is energy-efficient heating and cooling, which also gives EU municipalities the chance to achieve sustainable energy transitions.
The EVI aims to improve the annual rate of energy efficiency renovations in the union from the current 1 percent to 3 percent. Improving HVAC systems is essential, especially with an estimated 34 million Europeans unable to afford to heat their homes sufficiently.
In place of fossil fuel-powered boilers, heat pumps are a cheap Power Generation source to heat homes, although they may take some time to scale up. Municipalities can quickly implement smart thermostats and mandate that buildings have less efficient boilers inspected annually.
Use connected and Smart Lighting:
Adopting interconnected LED lighting systems to the Internet of Things is the simplest and least expensive way to solve the energy challenge.
Considering that lighting uses 12% of the world’s electricity, innovative LED technology can significantly lower energy expenses by 80%.
The EU could save 9.7 TWh annually, equal to the annual electricity usage of 2.7 million families if it converted 20 percent of all existing conventional light points in public installations (educational institutes, highways, and streets) to LED.
Smart connected lighting offers numerous significant advantages, including remote maintenance, occupancy detection, UV-C disinfection, and its ability to cut the world’s carbon footprint by 553 million tons per annum.
Harry Verhaar, Head of Global Public & Government Affairs at Signify, said:
“This will reduce energy costs, reduce emissions on the road to carbon neutrality, and create good local employment for people renovating buildings and streetlights.”
The Final Word:
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