The energy transition is a huge challenge for Europe. Phasing out fossil fuels in favor of low-carbon sources represents a profound paradigm shift for our societies. But it’s an essential turning point in the fight against global warming.
Against this backdrop, French energy group Engie conducted a wide-ranging citizen consultation with 10,000 Europeans in 10 countries (France, Germany, Italy, Spain, Portugal, the UK, Poland, the Netherlands, Belgium and Romania). The aim is to take the temperature of this ongoing energy transition and identify the main challenges ahead.
While the results of this study confirm broad public support for the very principle of this energy transformation, they also highlight a number of questions and fears that need to be allayed. On the strength of these lessons, Engie is now formulating 5 major recommendations to Europe’s leaders to ensure the success of this vital but complex transition.
Integrating the imperative of cost control
First recommendation: take citizens’ concerns into account
Take account of citizens’ concerns about purchasing power by integrating the imperative of cost control into the European energy strategy. While almost 9 out of 10 Europeans say they are in favor of speeding up the green transition, many fear its impact on their budgets.
« The end-of-the-world versus end-of-the-month dilemma, highlighted by the Gilets jaunes movement in France back in 2018, finds its full resonance in our study, » stresses Gilles Finchelstein, General Secretary of the Fondation Jean Jaurès associated with the consultation. « We must now demonstrate that this transition can take place at an acceptable cost and that the future it outlines is desirable. »
For Engie CEO Catherine MacGregor, this will be a complex equation to solve. « There’s a lot of talk today, in the name of the economy and purchasing power, of slowing down or even abandoning the energy transition. We can’t resign ourselves to this, but we must provide concrete answers to the legitimate concerns of citizens. »
Engie’s second priority: bridging the gaps in Europe’s energy system
Fill in the blind spots in Europe’s energy system by mobilizing tens of billions of additional euros each year for the deployment of electricity grids. These massive investments in electricity transmission and distribution infrastructures will be essential to support the growth of intermittent renewable energies such as wind and solar power.
The company sees this project as an opportunity for Europe to reindustrialize in forward-looking sectors such as solar, wind, electricity storage and green hydrogen production. A lever for industrial sovereignty and job creation.
Third recommendation: a pragmatic regulatory framework
Build a coherent, simple and pragmatic European regulatory framework to support this profound transformation of the energy system. In the energy company’s view, this requires ambitious pricing of CO2 emissions, with a sufficiently high carbon price to accelerate decarbonization in all sectors.
The company also advocates massive support for the development of electricity storage technologies (batteries, pumped storage stations, decarbonized thermal power plants, etc.). Indispensable for managing the intermittency of renewable energies and ensuring the resilience of the power system in the face of consumption peaks.
Lastly, Engie calls for continued sustained development of renewable energies such as solar and wind power, while retaining a place for low-carbon gases like biomethane and green hydrogen. According to the company, these molecules will remain indispensable for certain uses that are difficult to electrify, such as sea or air transport, or the production of steel and cement.
Fourth point: targeting public funding
The need to better target public funding to support the energy transition. The company believes that Europe has a clear technological lead in renewable gases such as green hydrogen, which needs to be consolidated. Public aid should be focused as a priority on these strategic sectors for the future.
On the other hand, Engie believes that it is now too late to recreate a competitive photovoltaic industry in Europe in the face of competition from Asia. « European modules are currently 2.3 times more expensive than imported modules, and they account for 60% of the capital expenditure on a solar installation », stresses the energy company.
Fifth recommendation: guarantee carbon neutrality
Guarantee the principle of carbon neutrality by 2050 by accelerating decarbonization on all fronts, without technological sectarianism. Nuclear, renewables, CO2 capture and storage, hydrogen, bioenergies… All options must be mobilized to achieve the goal of zero net emissions.
« We need to be less restrictive on different energy molecules, whose decarbonization will be slower than that of electricity, as in the case of hydrogen, » he argues Catherine MacGregor. A signal sent to European regulators to relax the eligibility criteria for support mechanisms in certain sectors.
In short, Engie’s message is clear: Europe must rise to the challenge of energy transition without abandoning its principles of decarbonization, while securing its supply, preserving its industrial competitiveness and taking into account the financial constraints of its citizens. It’s a narrow path, but one that the energy company believes is essential to the success of this historic transformation.
A pragmatic approach to technology
Beyond these five main recommendations, Engie insists on the need to remain pragmatic about the technological choices to be made. While the company logically defends its own business model based on « molecules » (gas, hydrogen, etc.), it also puts forward concrete arguments.
« Molecules are storable, transformable and transportable. They make it possible to draw on existing infrastructures such as gas pipeline networks, and to respond to peaks in consumption that are difficult to manage using electrical solutions alone, »points out the energy company.
As an example, Engie estimates that in France, « to respond to extreme cold peaks today with electrical solutions alone, we would need to provide 150 GW of additional capacity, equivalent to 90 nuclear reactors, and double the existing network of transmission lines ». A scenario described by the group as « untenable ».
Reassurance about social impacts
But beyond the technical and economic aspects, the challenge will also be to reassure people about the social impacts of this energy transition. The results of the consultation carried out by Engie illustrate the doubts of some European citizens about the collective ability to carry out this historic change of direction.
Nearly one in two Europeans has reservations about achieving carbon neutrality. In France, this lack of confidence is even more pronounced, with the population both skeptical about the future in general and distrustful of the political institutions that are supposed to carry out this transformation project.
This observation, according to Gilles Finchelstein, « should encourage public authorities to better explain and involve citizens in the energy transition ». Otherwise, this vital project in the fight against global warming could come up against overwhelming popular opposition.
The energy transition is a highly complex challenge that will require considerable efforts from all stakeholders (governments, businesses, citizens). Calling for a pragmatic, inclusive and reassuring approach, Engie reminds us that a subtle balance must always be struck between ecological ambitions and socio-economic realities. It’s a constant balancing act, but one that’s essential if we are to succeed in this historic transformation.
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