Energy crisis: These are the Brussels proposals to lower prices

Last Friday, October 21, the EU Heads of State and Government met and agreed to launch a mechanism that immediately cap the price of gas in a few minimums. In addition, they are already working on preparing a report to measure the impact, costs and benefits that the extension of the ‘Iberian exception’ (which applies in Spain and Portugal and limits the price of gas used in generation of electricity) and the joint purchase of gas to lower costs. The energy ministers of the Twenty-seven will collaborate in said report.

Faced with these proposals, the electricity and renewable companies have a lot to say. For its part, from Solaria they assure that, in order to stop and reverse the “destructive” climatic trends and eliminate our dependence on fossil fuels, the European Union, “needs to speed up the ecological and energy transition that is already underway in many countries. One of its main strategic vectors must be the rapid and massive deployment of renewable energy (mainly photovoltaic solar and wind power). Thanks to them we will be able to carry out a change in the energy model that intertwines four fundamental axes: Decarbonize the electrical system, transport, industry, housing, etc.; electrify the economy; provide us with energy sovereignty: and lower electricity prices.”

And they ensure that renewable energies are capable of achieving these four keys (decarbonise, electrify, provide energy sovereignty and lower prices), being, therefore, a fundamental part of the solution.

“We need energy to live, just like we needed it thousands of years ago to survive. With one difference: today we know how to produce energy in a clean, cheap and environmentally sustainable way, using the unlimited resources provided by the sun, water, biomass and the atmosphere” – and they add – “In fact, Spain has already experienced what that until now seemed like a utopia: on Saturday, April 2, according to data from Redeia, our country was able to generate almost 100% of the peninsular internal demand for electricity with renewable energy for a few hours (just like, a few weeks later, California did it for its 40 million inhabitants).

In addition, from Solaria, they are clear, “the energy crisis, the climate crisis and the economic crisis that we are suffering have the same root: fossil fuels. Consequently, we cannot take the risk of continuing to depend on them, neither for environmental reasons nor for reasons of energy security (or sovereignty). It is a vital necessity to undertake politically and business-wise an accelerated ecological transition that puts renewable energies at the center of the geopolitical table. Because a society (any society) can only be built on an environment that welcomes it and sustains it, both economically and environmentally.”

They also ensure that the debate no longer pivots on “renewables yes or renewables no” because “no one questions that renewables are essential to lower electricity prices and obtain energy sovereignty.” […] The debate now revolves around the speed with which the energy transition.”

In the case of Naturgy, they emphasize the idea that “Spain has the largest solar resource in Europe and an important wind resource, which makes the country a world power in renewables. In addition, it leads the integration of renewable generation in the electrical system, which is an additional advantage to advance in other technologies that contribute to the decarbonization process of our country. Additionally, the PERTE for renewable energies, renewable hydrogen and storage approved by the Government at the end of last year, will help boost the value chain and knowledge of renewable energies and gases in Spain.”

They assure that Naturgy is very aware of the importance of renewable generation in a decarbonized world and, therefore, has proposed to reach an installed capacity of renewable sources close to 60% in 2025, “the company plans to invest 14,000 million euros during the validity of its Strategic Plan, of which approximately two thirds will be dedicated to promoting renewable generation.”

In its attempt to collaborate in putting an end to the energy crisis and its commitment to renewable energies, Naturgy is currently immersed in projects to build wind farms and photovoltaic plants in Spain, projects to increase the power of renewable generation, the promotion of projects with biomethane – a pioneer company in the development of this type of energy in Spain – and hydrogen projects, through large H2 valleys and the creation of large-scale production and renewable hydrogen hubs.

For smaller companies in the market, such as Umbrella Solar, promoting renewable energies by the European Union in a context of energy emergency such as the one we are experiencing as a result of the Russian conflict is also a priority.

“Photovoltaic energy has to occupy a relevant market percentage. Today it is still a minority energy and in a country like Spain, which has much better solar irradiation than that of its European neighbours, there is no doubt that all photovoltaic development has to add value in these times that are really complicated for a lot of industry and for many homes that are seeing that the electric bill keeps going up and it is getting more and more difficult to deal with it”, they explain from the company and add that, from Umbrella Solar, they are convinced that they can help alleviate these effects, “through our proposal for the residential market, through the company Turbo Energy, with solar panels, smart batteries, with our projects on the ground and the development of cheap and sustainable energy and with self-consumption projects in the commercial and industrial sector.”

Finally, they highlight the necessary and urgent intervention of the EU on this issue, “all this has to go hand in hand with a strategy, hopefully more determined than the current one, by the European Union, where the commitment to renewables is still is timid, although the intentions are good it seems that the implementation should be more determined because the need is very high and the urgency is maximum.”


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