Boosting the use of locally generated renewable electricity is Europe’s optimal strategy to decrease its dependency on unpredictable international energy supplies and escalating energy prices, according to a European Environment Agency (EEA) assessment released today.
The spike in global gas prices this year has cost the European Union an additional €13 billion by mid-April, whereas renewables have resulted in savings of €29 billion. This demonstrates that renewable energy sources are already protecting Europe from price fluctuations — and have the potential to do much more — by acting as a robust shield against gas price volatility, as outlined in the EEA briefing ‘Renewable electricity: best buffer against gas price volatility’.
Europe’s reliance on fossil fuels remains a vulnerability. With around 85% of all gas and 97% of all oil products consumed in the EU in 2024 being imported, Europe is still susceptible to external supply shocks, which directly affect competitiveness and strategic autonomy. This ongoing reliance on fossil fuel imports means European consumers are bearing a significant gas volatility premium, especially following external political and economic disruptions like the war in Ukraine and the recent closure of the Strait of Hormuz due to the US-Israel-Iran conflict.
Increasing the deployment of renewables like wind and solar could decrease Europe’s fossil fuel import dependency and avert a potential 125% increase in wholesale prices by 2030, according to the briefing that involves the evaluation of price and renewable deployment scenarios. This is based on a projected 68% increase in renewable energy usage within the total EU electricity generation, as forecasted by EU Member States in the latest 10-year network development plans.
Nonetheless, the EEA briefing warns that renewables alone will not achieve price reductions. As the share of renewable electricity grows, price benefits become increasingly reliant on grids, storage, and demand response to integrate variable solar and wind power. The quicker electrification of buildings, transport, and industry must be matched by simultaneous advances in renewables, grids, storage, efficiency, and demand response to avoid committing to additional gas-fired capacity.
Balanced progress across supply, demand, grids, and storage — supported by pricing that promotes electrification — is crucial for achieving sustained price reductions, the briefing concludes.
These measures are discussed in more detail in the EEA report ‘Renewables, electrification and flexibility – For a competitive EU energy system transformation by 2030’.
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