Affordable energy – Unlock the potential of decentralised, dispatchable power
26 February 2025
The Clean Industrial Deal and the Affordable Energy Action plan aim at decarbonising the energy system and European industry while keeping prices competitive. They have the right ambitions but fail at picking the right tools.
The Draghi and Letta reports sounded the alarm on energy prices. Since the Russian invasion of Ukraine, gas prices in the EU are between three to five times the prices in the US, while electricity prices are two to three times those in China. Prices are also more volatile than in other world regions. Achieving lower prices is necessary but will not be simple. It will require a system view that makes use of all available technologies and energy carriers.
We therefore welcome the recognition that molecule-based generation is here to stay. Indeed, dispatchable power solutions contribute to energy security and to the balancing of supply and demand in different timeframes. Deployed only where needed and running when needed, they reduce the need for grid investments and contribute to keeping prices in check in moments of extreme scarcity.
Our recommendations
- Take a system approach to energy costs
- Untap the potential of flexible smart generation
- Support decentralised efficient solutions
- Build on existing infrastructure
- Work towards competitive gas prices
