(Editor’s note: This post on energy is part of Dispatches’ Tech Tuesday series. Without affordable energy, Europe’s tech sector – supported by energy-consuming data centers – cannot be competitive in world terms.)
Ever since the reopening of the world economy following the first waves of Covid-19 lockdowns, the European Union has been facing an energy crisis like never before. Since the EU is massively dependent on imported energy supplies, not least in the form of natural gas from Russia, the Ukraine War and European sanctions on Russia inevitably triggered a catastrophic surge in the cost of energy on the continent.
Consumers were hit by the crisis in the form of dramatic price hikes on their energy bills, which were only reined in by a price cap which continued to be enforced until January this year. But European industry has been pushed into a downward spiral by unsustainable energy costs, with the EU’s manufacturing powerhouse Germany now facing its third year of recession.
On the other hand, this situation has forced European economic and political strategists to rethink how Europe will become less dependent on energy imports, and how quickly they can make it happen. As a result, there has been large-scale investment in locally-sourced renewable energy sources across the continent. The European Investment Bank made a 1.7 billion euro deal with Solaria to build more than 100 solar plants across Iberia in 2023, and in February this year outlined a 5 billion euro package for the development of European wind energy manufacturing alongside Banco Santander.
Transition to renewables without infrastructure upgrades risks disaster
Trying to fast-track the EU’s transition to renewable energy isn’t a straightforward process, however, as we have already seen this year with the enormous power outage across Portugal, Spain and Southern France at the end of April. Europe’s creaking infrastructure is already being pushed beyond its limits, as CNBC reports that some businesses with above-average energy needs are facing eight-year waits to be connected to the grid.
These infrastructural issues don’t even take into account an accelerated programme of expansion for solar and wind power. The shortcuts taken to increase the proportion of energy supplied by solar farms in Spain in double-quick time – without the necessary infrastructural upgrades or fail-safes installed – are believed to be the main cause of the Iberian power outage of 28 April. Grid lines and substations in the region aren’t designed to withstand the amount of variation in electricity supply that naturally occurs when energy is sourced from variable sources such as solar farms (via Carbon Brief).
A bumpy (but potentially world-changing) road ahead
What happened in April is unlikely to be a one-off incident in Europe over the coming years as a hard transition to locally-sourced renewable energy sources gathers pace, without the proper investment in grid infrastructure needed to go along with it. The European Union is still a net importer of energy as of 2024 (via the European Commission). While countries such as Denmark, Spain, Portugal and Croatia are leading the way with the majority of their energy generated from renewable sources, the EU as a whole still has a long way to go.
If investment in a massive overhaul of the continent’s infrastructure doesn’t accompany subsidized deals with private renewable energy firms, then this rapid turn towards sustainable energy resources is going to be a bumpy ride. By some miracle, no deaths were reported in relation to the Iberian blackout, although tens of thousands of people were left stranded for hours in total darkness and enclosed spaces. Another blackout on this scale, or even bigger, could have far more deadly consequences.
Europe could become a world-leader in generating most of its electricity via renewables within five years, potentially laying the basis for an exciting new chapter of technological development for us all. But if the transition to that point isn’t done properly, with a plan of infrastructure scaling and investment fully integrated into the process, it could cause unnecessary casualties as well as social and economic damage.
Such a scenario would also provoke a backlash against the movement towards clean and sustainable energy that the future of the human race could do without.
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Alex Beaton
Alex Beaton is a writer from London, UK. His published works include a guide to starting a business in Warsaw, a fictionalised account of his time living in Egypt, and a 2013 report of the political situation in Bulgaria. He has also written extensively about his travels in France, Portugal, Italy and Malta.
