Should we be more willing than ever to become energy independent? #WattAChange

Energy, a commodity that for years was granted in the EU and US is nowadays, as we all know, a back-up weapon used by the Russian Federation to put pressure on the political leaders of the western democracies. It is also well known that EU dependency was cultivated in may years when the economical growth across the continent was feed mostly by the Russian gas. Contracts were concluded, pipelines were built and the partnership was flourishing. Being a partnership between two different kind of states, the fragility have been seen once the second invasion of Ukraine started in February. The invasion was anticipated by the behavior on the EU gas market and seen as well in the electricity markets due to the link between the gas and the electricity markets. The decoupling between the delivered gas volumes and the growing demand boosted by Recovery and Resilience funding injection to restart EU economies after COVID19 outbreak created a perfect storm. The increase in gas prices putted under stress the European economy. Member States have mainly applied a mix of measures based on economic transfers of State resources, while starting to introduce uncoordinated measures putting under pressure the internal energy market of gas and electricity. The picture can be complemented also by waves of sanctions against Russian Federation's business, persons and sectors and the EU business are trying to bring their contribution in presenting to policy makers solutions and ideas to respond the crisis.

The context is so revealing us two types of approach envisaged also by the European Commission in its REpowerEU plan that need to be further endorsed politically and further on implemented: gas reserves to meet demands on the short run and the boost of the renewables as soon as possible. The legislation for the common EU gas reserves is advancing with record-speed but it will need some complementary measures. The most relevant one is related to limiting the raise of the gas prices in the EU hubs while attracting LNG deliveries through a sort of "contracts-for-difference" mechanism. Such measures is seen by some analysts as effective not only for calming down the gas markets but also for stopping the contagion effect of the gas price in the electricity markets and further on preserving the functioning of the electricity market.

Some could wonder why such a short medium measure could be useful and not a bad one. It might be needed to look for this answer in the future: decarbonization, electrification, zero emissions, in a nutshell: renewables. While in the past when was more a "hipster fashion" to like renewables more than fossil fuels and they were subject either to denigration media campaigns or to less effective policy measures, not the technologies are matures and complemented with the other measures like grids digitalization, flexibilization and storage solutions are offering the long, clean and innovative response to the energy crisis. And still, some could consider these solutions expensive and less effective - here I believe that is good to know that "where there is a will, there is a way" and REpowerEU package is trying to solve the funding allocation. Meanwhile, the transition is bringing job grow/creation, considering also the upskilling and reskilling opportunities.

Practically speaking, in this moment personally I am not happy for example that I have to heat my home with gas. Mostly because of the high price I have to pay now. I would have liked today, in the current crisis to be able to access fast an electric solution. By this, me, and many more could have saved more gas to the benefit of industries that really need it nowadays, without creating a pressure on the markets and governments that have to deal with this social aspect in primis.

A change is needed. In fact the change is underway. Enel for example, as one of the world leaders of the energy transition is proposing an accelerating renewable-based electrification, being confident that #REpowerEU plan is a fantastic opportunity for Europe to break its gas addiction, reduce emissions and strengthen its energy independence, responding to both #EuropeanGreenDeal and #fitfor55 socio-economical plans. And in the end, we could be all part of the change.

I invite you to have a look on the ideas shared at the link below:

https://www.linkedin.com/posts/enelgroup_repowereu-wattachange-fitfor55-activity-6934850515038056449-yHon?utm_source=linkedin_share&utm_medium=member_desktop_web