From Net-Zero Goals to Net-Zero Progress: Deploying a resilient and sustainable European energy system

Jointly agreed common climate goals need strong support from the government.

To combat climate change while ensuring energy security, governments must invest in both renewables and fossil fuels, while avoiding single source dependencies that slow the transition. The progress of the energy transition is a long and bumpy road ahead, especially for some Central Eastern European countries, whose energy systems are still part of and connected to the Russian energy system. In addition, the complexity of decision-making processes has a massive impact on progress in Europe. Political regulation which severely reduce complexity would help to remove self-imposed hurdles and streamline decision-making and approvals at all national and EU levels.

Technologies that support energy resilience and net zero targets require huge investments.

One thing is clear: Energy must be seen as a critical material, requiring a strong push to diversify supply chains, energy technologies, and collective efforts to avoid high single-source dependencies. Moreover, we need to move from net-zero goals to net-zero progress. The time for discussions is over. It is now time to get real net-zero projects onto the road.

European countries remain committed to phasing out coal, with different implications for the overall energy mix in Eastern Europe. Utilizing existing infrastructure and improving energy efficiency is an appropriate way to decarbonize quickly and effectively.

High-efficiency gas-fired power plants will replace coal, such as the Mintia plant, one of Europe’s most efficient gas-fired power plants, adding a capacity of 1,700 MW for the Transylvania region in Romania. Modernization of existing infrastructure is a key lever for decarbonization. We need to continue the coal-to-gas shift in power generation and increase the efficiency of gas use. Because switching to gas significantly reduces CO2 emissions. If every coal power plant in operation today were converted to modern combined-cycle power plants, global emissions could be cut in half.

In addition, green hydrogen can already be used in our turbines and will replace natural gas over time. Right now, we can co-fire up to 75 percent hydrogen, and we are planning with 100 percent by 2030. By 2050, Europe will need a total of 350 GW of flexible, dispatchable power plants, most of which will run on hydrogen and renewable gases. The EU, however, has deliberately limited the role of hydrogen in re-electrification. Instead, it has adopted an approach that promotes H2 only in the so-called hard-to-abate sectors. This is where hydrogen and other green fuels will be needed to achieve deep decarbonization of energy systems.

Nuclear power will also remain an important part of the energy mix in Eastern Europe, providing security of supply and decarbonization in many regions (about 25% in Poland).  In other countries, nuclear power is even more important. This week, together with our customer @Teollisuuden Voima Oyj in Finland, we officially inaugurated Unit 3 of the Olkiluoto power plant, the world's most powerful nuclear unit at 1,600 MW. This means that the Olkiluoto power island now supplies around 30% of Finland's electricity in a clean and reliable way.

Harnessing the energy transition as an engine for growth and a path to greater independence requires a holistic approach to technology. The power grid infrastructure will be the common backbone of Europe’s energy system. A resilient and interconnected European grid will enable electricity to be exchanged and transported to where it is needed in the most economical way. The war in Ukraine has accelerated plans for the three Baltic states to decouple from BRELL (the electricity grid Belarus-Russia-Estonia-Latvia-Lithuania) and join the EU grid ENTSO-E, initially planned for 2025. Furthermore, the wind industry plays an essential role in Europe when it comes to reducing dependence on natural gas from Russia. It should therefore be regarded as a strategic industry for securing Europe’s energy resilience. In her State of the Union Sep 13, 2023, Ursula von der Leyen announced that the Commission will propose a European Wind Power Package to support Europe's wind industry as renewable energy companies face challenges, including inflation.

A joint approach to mitigate dependencies

Beyond all the developments in European countries to become more independent in ensuring energy security, it is crucial to join forces to ensure an energy system that works across Europe – for everyone. The #WarsawSecurityForum is crucial in these times to discuss and push for diversification of supply chains and technologies. However, diversification comes at a cost and takes time. To ensure Europe's energy security and competitiveness, we need public-private partnerships and incentives to attract private investment to accelerate the transformation of our energy systems.