The European Union has incurred an additional €930 billion in expenses. This cost is entirely due to their fossil fuel imports for the energy crisis years 2021-2024. This crisis has highlighted the EU’s heavy reliance on external sources for energy, with imported fossil fuels now accounting for 58% of the region’s energy needs. As the EU grapples with these issues, it attempts to accelerate away from fossil fuel dependency and improve its electrification rate.
The United States remains the single largest supplier of both crude oil and liquefied natural gas (LNG) to the EU. In reality, the top four gas companies wield a huge 81% of the EU’s fossil fuel imports. Today, only 22% of energy consumed in the EU is electrified. This is a woefully high number compared to China’s rate of 28%. Countries such as Norway and Sweden have even electrified over half of their networks with 47% and 33% of their total network, respectively, now electrified.
The Impact of Fossil Fuel Dependency
The EU’s reliance on fossil fuels isn’t limited to the power sector. In fact, an astonishing 82% of these fuels are used beyond the electric sector, mostly in transportation, heating, and industrial operations. This overreliance further emphasizes the dire need for a cohesive long-term plan to move away from this traditional energy landscape towards cleaner, more sustainable energy sources.
Moreover, the financial burden imposed by fossil fuel imports raises questions about the security and affordability of the EU’s energy system. Chris Rosslowe, an energy expert, emphasized this point, stating:
“Imported fossil fuels are no basis for a secure and affordable energy system – something Europe has learned the hard way. Homegrown energy sources, such as wind and solar, take on more strategic value in a world faced by frequent crises.” – Chris Rosslowe
Progress in Renewable Energy
Yet in spite of these headwinds, wind and solar energy are booming. Even better, this rapid expansion is helping us cut our dependence on imported fossil fuels. Between 2019 and 2024, the EU has saved approximately €59 billion ($68.79 billion) in fossil fuel imports due to advancements in renewable energy technologies. This trend points to a bigger move towards a less global, more self-reliant energy chicken or egg that favors U.S. production.
As investments in renewable energy sources grow, electricity production within the EU is rapidly becoming more homegrown. Experts caution that the full potential of this transition is being hindered by a lack of urgency in electrification efforts. Rosslowe noted:
“The full potential of Europe’s homegrown power supply is being wasted by a lack of urgency to electrify. Unblocking electrification is the game-changing move that can shield the continent from overreliance on volatile fossil-fuel suppliers.”
A Comparative Analysis
Look at the EU’s dependence on imported fossil fuels compared to other large economies – it’s staggering. Imports currently account for around 24% of China’s primary energy consumption. By contrast, India is dependent on 37%, and the EU a worrying 58%. This difference demonstrates that the EU needs to accelerate its shift to renewable energy. If it truly intends to do more for energy security, the time to propose those actions is now.
The current energy crisis serves as a critical reminder for Europe to reevaluate its energy policies and prioritize sustainable solutions. While these are positive steps, dialogues are already shifting toward improving electrification and decreasing imports. The EU now finds itself with a critical window of opportunity to redefine its energy future in a positive way.