Risks of depending on the import of fuels are being evidenced

AleaSoft, September 17, 2021. The root cause of the current situation of historical maximum prices in the European electricity markets is the energy dependence that the European Union has on gas imports. Alleviating this disadvantageous situation requires a long‑term strategy for the energy sector in Europe to become self‑sufficient with renewable energy. This strategy puts Spain in a very privileged situation.
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The current situation of stratospheric prices in European electricity markets highlights the risk posed for the European Union by having a very high energy dependence on imports. Importing gas, oil and coal involves a weekly outlay of billions of Euros, but not only that, it also means being totally at the expense of producing and exporting countries and of geopolitical conflicts.

This energy dependence does not only affect the electricity markets prices. It also directly affects the prices of transport fuels (gasoline, diesel, kerosene, etc.) and, indirectly, the costs of industry and electro‑intensive consumers.

Long‑term strategy in the energy sector in Europe

Solving the situation of energy dependence in Europe is not an easy task. It must be done with a firm, robust and enduring long‑term vision. The solution to this external dependence is renewable energy. Producing our own energy and even exporting it will lead to a clean future without importing energy or fossil fuels.

The governments of the European Union must encourage two key aspects in this long‑term strategy. On the one hand, the consumption of renewable energies in transport and industry, two of the sectors with the highest greenhouse gas emissions, must be promoted. And, on the other hand, the necessary infrastructures for the production of the main energy vector of the future, green hydrogen, must be planned and executed. In this long‑term strategy, it is necessary to start now to create infrastructures to produce, transport and consume hydrogen, which will be the substitute for polluting fossil fuels that Europe imports at high cost.

The advantageous situation of the Iberian Peninsula

In this decarbonised Europe, the Iberian Peninsula, and Spain mainly, will be in a very privileged situation. The southern half of the peninsula has the largest solar resource on the continent that, in a well‑planned future, will allow being self‑sufficient with renewable and clean energy and, in addition, exporting to the rest of Europe.

AleaSoft’s analysis on the prospects for energy markets in Europe

This long‑term vision necessary for the strategy in the energy sector will be discussed in the next webinar organised at AleaSoft for October 7. With this webinar, the organisation of monthly webinars is resumed, after the summer break, where AleaSoft, together with the most important companies in the energy sector in Europe, analyse the energy markets in Europe, their evolution and their long‑term prospects.

On this occasion, speakers from the consulting firm Deloitte will participate almost a year after the webinar held in October 2020 with the same speakers. At this year’s meeting, there will be an update on the topics discussed on that occasion, relating to the evolution of the European energy markets in the last year, the renewable energy projects financing and the importance of the forecasting in audits and portfolio valuation.

Source: AleaSoft Energy Forecasting.

Long term forecasting
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