This graphic contrasts the price range of electricity costs stemming from renewable sources with that of fossil fuels for the years 2010 and 2016. For more on the interplay between technological innovation and the geopolitics of energy, see Severin Fischer’s chapter for Strategic Trends 2018 here. For more CSS charts, maps and graphics on economics, click here.
Underequipped, the African continent is awash in the obsolescence of its facilities and bore the brunt of poor management of available resources. Representing 15% of the world population, Africa consumes paradoxically only 3% of the total world production of electricity.
Scotland and Albania want to produce 100% of their electricity from renewable sources by 2020. Their commitment, both prime ministers argue, is not only a huge step towards a more sustainable society but will also comprise the creation of thousands of “green collar” jobs. This is good news for the environment and also for their respective populations. But with little more than 8 years to go, isn’t this target too ambitious for the nations’ actual capacities?
The governments’ announcements come at a crucial moment. Investors have started to shift their business to China, and last month a report by the group CBI warned that the United Kingdom was not attractive for investment in renewables. But the recent disaster at the Fukushima nuclear plants and the long-standing urge for clean energies have shifted public opinion in Europe to make way for a new reality. A second green revolution is building as European countries renew their commitment to clean energies as the way forward.
Europe is talking energy and there is no easy way out of existing dilemmas: While nuclear and fossil-fueled power plants entail considerable risks, most sources of alternative energy are not yet considered mature enough to fuel Europe’s economies on their own. Like elsewhere across the globe, Europeans are facing tough challenges in their attempt to secure a clean, reliable and affordable power supply.
As in every crisis, the risk looms that countries just look after their own narrowly-defined national interests and either ignore or forget the advantages of a regionally coordinated approach. In their struggle for secure energy, European nations should not lose sight of the potential of the common electricity market. In the long run, it could play a crucial role in enabling a more efficient energy future both from an economic and an ecological point of view. Yet, many obstacles still need to be overcome at the moment.
In an integrated market, electricity could be exchanged efficiently across the continent, connecting demand to the most inexpensive supply no matter where in Europe. Consumers could benefit from choosing from a wide range of suppliers, which in turn would boost competition and innovation. Currently, however, the European electricity markets remain regionally fragmented. Countries and companies are not investing enough in transmission capacities across national borders because they struggle to agree on the financial burden-sharing of these expensive projects. As long as national grids are not fully interconnected, trade cannot evolve.