October 7, 2022 will go down in history as the first day of full coverage of electricity demand for at least five hours in Greece through green energy. This event brings visions of a (near) future where renewable energy plays a crucial role in electricity generation, where we will no longer talk about pinpoint exceptions, but talk about the absolute rule in the new energy reality.

Politicians must take into account the geopolitical aspect of energy. In retrospect, the European Union’s reliance on fossil fuels from Russia has proven particularly precarious and damaging to the European building.

The cornerstone of the current energy transition is the development of a common European strategy for building the energy systems of tomorrow. The decarbonization of the energy sector will take time, and its success is based on transnational government decisions over time. The success factors for the energy transition are stable policies and technological progress.

Technological progress is the driving force behind achieving economic growth. Well-directed investments in research and development lead to increased performance of energy systems and lower investment costs. Over the past decade, the weighted cost of energy from solar, offshore and onshore wind has declined by 87%, 62% and 56%, respectively. On the contrary, the cost of fossil fuels has reached unimaginable levels, and its high volatility has become a factor of increased risk to the global economy.

The energy transition is challenging and comes with inherent risks. Today, governments around the world directly subsidize 400 billion euros a year of fossil fuel consumption, more than twice as much as they support green energy production. This fact is a distortion of the market for the temporary interpretation of the energy problem, partially postponing its significant solution to the future.

It is imperative that the current transition does not turn dependence on fossil fuels (oil, natural gas) into dependence on raw materials (lithium, rare earth elements) needed for renewable energy projects and energy storage. Providing raw materials for clean energy projects (cobalt, iron, lithium, zinc, aluminium, nickel, copper) is an important factor in overall energy planning.

The International Energy Agency (IEA) notes that the demand for batteries is expected to grow at least sixteen times within a decade to reach targets set worldwide. This implies the necessary investment in new mines, with the risk of a shortage of lithium still hanging like a sword of Damocles. In addition, demand for these green metals is expected to increase by about seven times by 2030.

Commissioner von der Leyen recently announced a new European Critical Raw Materials Act initiative for the sustainable supply of critical minerals. The goal of this initiative is to increase and diversify the supply of critical raw materials to support the transition to green and digital technologies.

Europe’s transition to a zero-emissions economy will require significant investment in infrastructure.

Europe’s transition to a zero-emissions economy will require significant investment in infrastructure. Goldman Sachs, in its recent analysis, indicates that about 10 trillion will be required in total. euros by 2050, while the corresponding share of investments in renewable energy technologies will be 3.5 trillion. At the national level, the RES target to be included in the revised ESEK is expected to be 25 GW by 2030, and investments in new RES projects with a total capacity of 12 GW are estimated at 10 billion euros.

The penetration of RES will be accompanied by the modernization of networks and the strengthening of interconnections in the wider region of South-Eastern Europe. The recently announced proposed electricity interconnection of Greece, Austria and Germany is heading in the same direction, which will facilitate significant green energy exports and a host of economic and geostrategic benefits for the country.

Energy storage is expected to improve energy systems. Affordable storage technologies (mechanical, electrochemical, thermal, and chemical) benefit from the timing shift in the supply of generated energy to the grid, maintaining grid stability and proximity between generated and consumed energy, avoiding network saturation and dependence on additional long distance connections.

It is expected that hydrogen will contribute to off-season energy storage and decarbonization of sectors of the economy with a significant carbon footprint (industry, transport), using in the future the existing extensive network of gas pipelines for their transport needs.

Electrification will help improve living conditions in urban centers and reduce dependence on fossil fuels. In the future, this will allow for short-term energy storage with charge-discharge cycles of vehicles when needed by the system and when they are in a stationary state. The reduction in transportation costs is accompanied by a reduction in the cost of maintenance of electric vehicles, which contributes to the growth of the economy and disposable income of citizens.

In the area of ​​energy conservation, skepticism that energy efficiency actions are competitive in advancing a green renewable agenda can only be described as non-existent. Given that the statutory RE targets are expressed as a share of energy consumed, efforts to decarbonize the energy mix must be undertaken systematically and collaboratively both at the level of production and at the level of energy consumption.

The energy crisis is sounding the alarm. Accelerating the energy transition and moving away from fossil fuels is needed more than ever. RES are expected to play a catalytic role and provide the necessary energy security and stability. Investment in new renewables must continue at an even faster pace, supported by clear policies for the benefit of citizens and the environment.

* Mr. Konstantinos Mavros is the Managing Director of PPC Renewables.