Europe can halve gas usage, save US$ 350bn by 2030 by doubling renewables release

Mar 29, 2022 03:00 PM ET
  • Europe can cut in half the amount of gas in its energy mix and decrease energy costs by EUR323 billion (US$ 356 billion) if it rapidly accelerates renewable release, according to a brand-new report from energy technology group Wärtsilä.
Europe can halve gas usage, save US$ 350bn by 2030 by doubling renewables release
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The report stated Europe's existing energy crisis, triggered by relentless gas lacks combined with Russia's invasion of Ukraine and also intensified by subsequent Western sanctions, has "given the clearest signal that nations need to accelerate far from baseload gas to mainstream renewable power, backed by stabilizing technologies, at breath-taking rate".

Wärtsilä designed 2 scenarios to show the energy costs, gas use as well as carbon emissions of building renewable capacity across Europe.

Its most enthusiastic scenario models a doubling of renewables implementation to 80GW annually to achieve nearly two-thirds (61%) renewable electricity by 2030.

Under this scenario, European nations could halve their power system gas intake from 1,546 TWh in 2021 to 745TWh in 2030. This would certainly cause power system financial savings of EUR323 billion (US$ 356 million). A cumulative saving of EUR98 billion was feasible by 2025, included the report.

" This would certainly have seemed unthinkable a years back," Wärtsilä stated. "Yet the combination of plummeting technology costs, the vital to change far from fossil fuels as well as the climate crisis have actually made it politically appropriate and also economically practical."

For context, the EU installed 37GW of wind as well as solar in 2021, suggesting it needs to greater than double its release each year via to 2030. If it were to do so, however, the benefits to its energy security as well as climate targets would be significant, stated the report (see table).

Baseline and Ambitious scenarios for European energy generation and consumption. Source: Wärtsilä.

Wärtsilä claimed all the technologies and also competence required for accelerated renewables release was in place and all that was needed was the "political will" to do so, branding contact us to turn around decarbonisation as well as double down on fossil fuels "illogical".

The report follows the European Commission gotten in touch with European nations to accelerate renewables release "at warp speed" to lower dependence on Russian gas, with the International Energy Agency (IEA) additionally unveiling a 10-point strategy to assist the continent wean itself of Russian fossil fuels.

The next 3 years are "vital in lowering Europe's exposure to the extreme volatility we see in fossil fuel markets today", claimed the report.

Wärtsilä offered a list of seven recommended actions for decision manufacturers across Europe. They include collaborating activities that can accelerate the scalability of development; prioritising renewable licenses, which the EC is already checking out; motivating financial investments in energy storage and also balancing technologies; cross-border framework tasks; leveraging public financial investment to protect exclusive capital; buying eco-friendly hydrogen; and the electrification of key markets.

Wärtsilä's report also modelled a less enthusiastic 'baseline' scenario that sees Europe include 40GW of renewables each year, leading to 13% drop in gas usage for electricity generation and renewables composing 50% of the continent's energy mix by 2030. Considered that Europe set up 37GW of wind and also solar in 2021, this scenario is very likely to be met, specifically due to the war in Ukraine.

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