The war in Iran has altered the balance of the global energy market following the attacks by the United States and Israel. This situation is causing a new energy crisis in Europe, but its impact is very uneven, as the countries that have made a strong commitment to renewable energies are much better protected against price increases.
Gas-dependent countries face higher volatility
European countries with a high dependence on gas, such as Italy and Germany, are experiencing more pronounced increases in wholesale electricity prices. Italy has recorded increases of more than 20%, while Germany has seen increases of more than 15%.
This volatility also increases inflationary pressure and raises the risk of an economic slowdown. Companies, already affected by high oil prices high oil prices, are finding it more difficult to remainare finding it more difficult to maintain their competitiveness.
Renewable energies act as an energy shield
In contrast, countries with higher penetration of renewable energies show greater resilience in the face of the crisis. Albania stands out as one of the most representative cases, with more than 90% of its electricity generated by hydropower plants. hydroelectric power plants located on the Drin River, which keeps its prices under control.
Similarly, Spain has boosted its renewable capacity to around 60% of its total generation, even managing to reduce prices in certain periods. France, supported by its nuclear energy, also shows a lower rise compared to more gas-dependent economies.
Technical challenges and structural dependence
The advance of renewable energies also presents challenges. In countries where there is high cheap solar generation at midday, the so-called “duck curve” appears, where prices fall at midday, but rise at peak hours, just when demand soars. At that time, gas is needed and prices go through the roof.
In addition, the lack of energy storage storage limits the ability to fully replace gas. Therefore, industry experts warn that the energy transition will require significant investments and additional technological solutions.
The European Union’s response
To cushion the blow to consumers, the EU is drawing up a shock plan. It is estimated that the war is costing the EU an additional €24 billion in energy purchases in just over 50 days, or €500 million a day. . The proposed measures include:
- Tax relief: electricity tax reduction for vulnerable households.
- Direct support: Income support and energy bonds for the most affected.
- Incentives: Encouraging the abandonment of boilers and combustion cars for more efficient electric alternatives.
In short, this crisis is demonstrating with facts that the commitment to renewables is not only an environmental issue, but an economic security strategy and a powerful tool to protect countries from geopolitical turbulence affecting oil and gas.
Source: Reuters