The crisis of European energy is that governments want to move the energy sector to renewable sources while the economy is growing and, at the same time, not to let the energy security slide.

The European Union has recently adopted far-reaching climate objectives that stipulate the reduction of emissions by 55% by 2030 as compared to the levels seen in 1990. Although the environmentalists have given the thumbs up, the problems are still there for the traditional energy companies.

The biggest energy companies in Europe are channeling money into green projects such as wind farms and solar power plants, among others, to be in line with the rules. Yet, these schemes are a sort of big capex (capital expenditure) that accompanied the time when the price margins were pressured already because of the fact that energy prices were uncertain and volatile, as well as geopolitical mistrust.

The unforeseen change in crude oil prices to less than the $70 per barrel mark has added “icing on the cake,” making it even more difficult for the sector to make a decision.

Germany and France are the main actors who are driving renewable energy and digitalization whereas the smaller countries in the EU are facing the obstacle of insufficient finances to compete with them and also the lack of infrastructure.

Moreover, Russia’s interference in Ukraine has caused disruptions in the whole energy supply chain of Europe. As a result, we have been faced with the prospect of discontinuities of the energy supply during the period of the top demand.

Nonetheless, analysts still view the future of Europe’s energy development in a positive light. They maintain that the money spent on renewable power generation not only helps to reach the climate targets but also makes it possible for the development of this green hydrogen and the battery storage sectors.