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Europe Network

The European regional network currently spans 30+ countries, from Iceland and Ireland in the West to Russia, Kazakhstan, Armenia, and Turkey in the East, including most European Union member countries. The large and diverse European regional community provides national Member Committees and their members with excellent opportunities to expand and deepen their network and engage around activities and events – from young energy professionals to CEO and Ministerial level – to drive action and achieve impact.

Regional action priorities that support the Council’s mission and humanising energy vision are agreed on an annual basis by national Member Committees in the framework of a Regional Action Plan. In 2021, European members joined forces to work on the Insights Briefing ‘Decarbonised Hydrogen Imports into the European Union: Challenges and Opportunities’ and formed a working group to activate the Council’s Humanising Energy vision in the region.

Each month, the European regional network meets to discuss matters of mutual interest, drive collective activities, and keep each other updated on relevant developments and events. In addition, throughout the year regionally targeted workshops are being organised to advance discussions in the context of our global insights and innovation tools.

Hydrogen has the potential to become the second main energy vector after electricity for the decarbonisation of energy consumption in end-use sectors. Its role in deep decarbonisation scenarios has been increasing in recent years, together with dedicated roadmaps and strategies that have been published in several countries. Under the guidance of a Steering Committee consisting of several European member committees, a study was undertaken by the European Network into Decarbonised Hydrogen Imports into the European Union: Challenges and Opportunities.

The Insights Briefing explores possible scenarios for consumption and production of decarbonised hydrogen in the European Union, in line with its net-zero greenhouse gas emissions goals. Cost estimates for the production and transportation of decarbonised hydrogen from various power sources are presented for several European and neighbouring countries, out to the 2030- and 2050-time horizons.

To access the recent hydrogen study, please click here.

Several European members formed a working group to engage stakeholders in the Humanising Energy conversation to:

Raise awareness of the human and societal dimensions of the energy transition
Exchange views, experiences and best practices on relevant topics related to Humanising Energy
Enhance visibility of the Council and its national Member Committees in the region around this topic

In July 2021, a side-event to the Vienna Energy Forum was organised, focusing on the challenges and opportunities of Humanising Energy in Regional Energy Transitions. Participants discussed how to fairly manage the impacts on regions and societies of faster paced energy transitions and looked at how stakeholders can work together in the process to effectively join the dots between ‘races to zero’ and social justice agendas.

As part of World Energy Week LIVE 2021, a conversation focusing on Active energy citizens: At the heart of the energy transition was convened. Participants explored how to ensure that all citizens, communities, and societies – including the most vulnerable – are involved in a clean and just energy transition.

Several countries in the region have developed national Future Energy Leaders Programmes. Periodically, events are organised to bring together the broad Future Energy Leaders community in Europe as well as European FEL-100 to network and engage in conversations around various energy topics. Webinars organised in 2021 include ‘How to Boost Renewables to Meet the EU Climate Target?’ and ‘The Future of Natural gas in the Energy System – a European Perspective’.

Energy in Europe

europe, world energy issues monitor, critical uncertainties, action priorities

REGIONAL OVERVIEW & CONTEXT

Not surprisingly, standing out amongst other regions and the global average, Europe’s highest critical uncertainty is a risk to peace, an issue closely linked to other critical uncertainties such as supply chains and commodity prices. Another key differentiator is that most of the issues are in the action priority zone, a significant difference from the last edition, where most of the issues were perceived as being more uncertain. This noticeable shift could be due to increased policy certainty as the EU begins to implement the elements of the EU Green Deal or proactive risk management to avoid future energy security and climate change-related risks. Innovation and global competitiveness play a crucial part in this difference, as all game-changer technologies are action priorities, except for CCUS.

EUROPE DEEP DIVE

Major regional changes

Since the last publication of the World Energy Issues Monitor in 2022, the energy landscape in Europe has undergone a profound transformation, driven by a combination of geopolitical events, technological advancements, and shifting societal priorities. The energy-related priorities in the region have evolved from a singular focus on energy security to a more holistic approach that encompasses security, equity, and affordability. For example, many governments in the European Union (EU), while aiming to diversify their gas imports, took measures to combat affordability issues for consumers. This shift reflects a growing recognition of the interconnectedness of energy issues and the need for comprehensive solutions that address the diverse needs and concerns of stakeholders across the energy value chain.

One of the key drivers of change since 2022 has been the geopolitical tensions due to the war in Ukraine, which has had far-reaching implications for energy markets in Europe and beyond. The conflict has highlighted the risks of relying on a limited number of energy suppliers and has underscored the importance of diversifying energy sources and supply routes. As a result, policymakers and industry stakeholders have prioritised initiatives aimed at enhancing energy security through increased diversification, investment in domestic energy production, and the development of alternative energy sources. Risk to peace, commodity prices, and supply chains are therefore critical uncertainties for respondents.

Accelerating regional trends over the last 5 years

The energy transition has gained momentum, driven by growing awareness of the need to address climate change and reduce greenhouse gas emissions. The European Green Deal, introduced in 2019, has provided a framework for accelerating the transition to a low-carbon economy and has galvanised action across the continent. Ursula von der Leyen, President of the European Commission, noted, "The European Green Deal is our roadmap for transforming Europe into a sustainable and climate-neutral economy by 2050”. There has been a significant increase in investment in renewable energy infrastructure, with a particular focus on wind, solar, hydropower and renewable gases such as green hydrogen and biomethane.

This momentum is reflected in the results through the action priorities of transmission grids and energy storage. For instance, following the North Sea Summits in 2022 and 2023, Belgium, Denmark, Germany, the Netherlands, Norway, the United Kingdom, Ireland, Luxembourg and France have committed to developing around 300 GW of offshore renewable energy capacity in the North Seas by 2050 to support the EU, UK, and Norway in achieving net zero and enhancing energy security. Central to this plan is the development of a North Seas grid through offshore hybrid projects, such as hybrid interconnectors and energy hubs, and hydrogen infrastructure. The expanded Offshore Transmission System Operator Collaboration (OTC) Group is working to identify suitable projects and solutions, focusing on supply chains, market design, and cost sharing. Key projects and policy recommendations are outlined to underpin the long-term grid development, including enhancing procurement processes, public funding, transparency, skill development, and technology partnerships. Emphasis is placed on the necessity for strong collaboration among transmission system operators (TSOs) and stakeholders to overcome challenges, secure investments, and share costs and benefits equitably, ensuring the successful deployment of the offshore transmission grid.

Integrating people and communities in the energy transition

The transition to a low-carbon economy is not without its challenges. One of the biggest challenges is ensuring a fair and equitable transition, with benefits distributed equitably across society. This is particularly important considering the socio-economic impacts of the transition, which are likely to be felt most acutely by vulnerable and marginalised communities. Examples for such transition processes include Germany’s Ruhr region coal mining phase out of the early 2000s, and the most recent energy transition in the city of Aberdeen, in Scotland. To address this challenge, policymakers and industry stakeholders must place greater emphasis on inclusive decision-making processes that involve a wide range of stakeholders, including local communities, civil society organisations, and labour unions. Reflecting this context, acceptability, populism, and affordability have emerged as both critical uncertainties and action priorities for the region.

Leadership in integrating people and communities into the energy transition has emerged as a critical factor in driving progress towards a more sustainable and equitable energy system. For example, E.ON in Germany has launched community energy projects such as the SolarCloud initiative, enabling individuals to invest in solar panels on public buildings and earn credits for generated electricity. Similar examples include a Vattenfall initiative, working closely with local communities to minimise the environmental impact of its offshore wind projects and maximise the socio-economic benefits for nearby residents; and EDP Renováveis, establishing the Renováveis Educa program to engage communities through educational programs on renewable energy benefits.

Government initiatives, such as the establishment of one-stop shops and the Energy Community Repository project are helping to raise awareness and empower consumers to make informed decisions about their energy use. Youth-led initiatives, such as the National Future Energy Leaders programmes in many European countries, including in the Netherlands, Portugal, Germany, Austria, Romania, and Norway, are playing an increasingly important role in engaging citizens and mobilising support for the transition. At the same time, grassroot energy communities, such as RESCOOP, are demonstrating the potential for local leadership in driving sustainable energy initiatives.

Inclusive decision-making processes, facilitated by initiatives such as the Energy Efficiency Citizens' Panel, are helping to ensure that the energy transition is guided by the diverse needs and aspirations of communities across Europe. Labour unions are also evolving to advocate for workers affected by the transition and to champion just transition policies that safeguard workers' rights and livelihoods. These diverse forms of leadership are essential for building public trust and support for the transition and for ensuring that it is inclusive, equitable, and sustainable. In the long run, if successful, this can lead to changes in the importance of the issues of acceptability and populism.

A SNAPSHOT OF 2024 RESULTS

Focus on efficiency

To progress faster, fairer, and more far-reaching energy transitions, there is an increasing emphasis on scaling up renewable energy sources and improving energy efficiency. There is a general upward trend in the deployment of renewable energy projects. For example, the share of renewable energy consumed in the EU increased from 21.9% in 2021 to 23% in 2022, mainly driven by the expansion of solar PV (European Environment Agency). At the EU level, initiatives such as the Revision of the Energy Efficiency Directive (EED) mandate binding measures to promote energy efficiency by upgrading buildings, endorsing energy-efficient products, and investing in efficient technologies. Türkiye, Armenia, Moldova, Georgia, and Ukraine have adopted energy efficiency plans across various sectors to bolster their energy security, economic development, and climate objectives. In Portugal, the Plano de Promoção da Eficiência no Consumo de Energia (PPEC) promotes energy efficiency among consumers through measures such as energy audits and financial incentives, encouraging energy-saving behaviours and reducing overall energy consumption. Examples of funded projects include EcoVale, focusing on raising awareness about energy vulnerability and efficiency among students and citizens of Vila Nova de Famalicão and Barcelos, and Industry of the Future, which supports the hard-to-abate industrial sector through sharing scientific knowledge on renewable gases including green hydrogen and biomethane, aiming for energy efficiency and decarbonisation. Local efforts, such as Oslo's Climate and Energy Strategy, further contribute to advancing energy efficiency and sustainability goals.

Clean transition advancements

In 2023, Europe made significant strides in transitioning from fossil fuels to clean electricity, with fossil fuels share dropping by a record 19% to their lowest ever level, constituting less than one-third of the EU's electricity generation. Concurrently, renewables rose to a record 44% share, driven by wind and solar, producing 27% of EU electricity, with wind generation surpassing gas for the first time. Additionally, many European countries have initiated agreements with North African nations to explore pilot projects for green hydrogen production and exportation. Despite these advances, challenges remain in grid capacity and financing, exemplified by the Netherlands' grid congestion issues and the offshore wind sector's struggles with higher costs and supply chain problems. Addressing these challenges will require policy interventions, technological innovations, and financial incentives, including better financing for renewable projects and a focus on rapid implementation of local electricity and gas distribution grids, alongside transparent and participatory decision-making to build public trust and support.

Climate risk and resilience

Efforts to build climate resilience in Europe are intensifying with initiatives such as energy-efficient renovations and loss and damage funds. The European Commission's Renovation Wave aims to expedite energy-efficient building renovations to improve energy performance, reduce emissions, and enhance climate resilience. Several European countries have also introduced climate insurance programs, such as Germany's Natural Hazards Insurance Scheme, to help manage climate risks through public-private partnerships. The European Climate Risk Assessment report identifies 36 significant climate risks, grouped into five impact clusters: ecosystem destruction, food security threats, health hazards, infrastructure risks, and economic/financial risks. The Climate-ADAPT 2022-2024 Strategy outlines priority actions to address these risks. European countries are investing in sustainable infrastructure, innovative financing mechanisms, and adaptive capacity to build resilience. This requires collaboration between public and private sectors, mobilising resources for transformative projects, and leveraging public funds to attract private investment. The European Commission is also fostering public-private partnerships and developing regulatory frameworks to boost investment and innovation in fusion energy technologies.

FINAL CONSIDERATIONS

The 2024 World Energy Issues Monitor highlights a transformative period in Europe's energy sector, with a significant shift from traditional dependencies to a more resilient and diversified system. This evolution, influenced by broader societal and geopolitical factors, aligns with ambitious climate goals aimed at increasing sustainability, resilience, and inclusivity. However, navigating this path will require concerted efforts, strategic planning, and regional cooperation. As Europe advances its energy landscape, the coordination between technology, policy, and market dynamics will shape the effectiveness and sustainability of the region’s transition strategies.

CONVERSATION STARTERS FROM THE 2024 WORLD ENERGY ISSUES MONITOR

What are the specific challenges anticipated in the regional energy context in the year ahead, considering factors such as geopolitical disruptions, energy security, risk of deindustrialisation, workforce transition and cost of living crisis?
What lessons have been learned in stakeholder coordination, and what new approaches are proving effective? How do these efforts contribute to futureproofing the regulatory environment and avoiding compartmentalization and misaligned policy?
As technology gamechangers are being embraced, what are the implications for the workforce, trade, and research and development? What lies ahead for Carbon Capture, Utilisation and Storage (CCUS)?
What new policies are necessary to ensure a comprehensive and lower-risk approach to demand management?
Considering that international collaboration is a critical element for change, how is this affected by interplay with risks to peace, commodity prices, critical minerals and supply chain disruptions? What approaches are no longer effective, and what needs to be done differently?

ACKNOWLEDGEMENTS

Future Energy Leaders

Ivo Wakounig, PhD Researcher. Eindhoven University of Technology

Nevin Alija, Global Future Energy Leader / EU Affairs Manager, World Energy Council / Floene Energias

Damilola Adeyanju, Systems Programme Manager, EP100, The Climate Group

Janez Dolšak, Assistant Professor, School of Economics and Business (SEB LU)

Nikita Gorbatko, Executive Consultant & CEO, NGG Group

Regional Chair

Beatrice Buffon, Chair, Europe, World Energy Council

Project Management

World Energy Council