Reshaped energy system could save Europe €81bn, says Eurelectric report

Reshaping Europe’s energy systems could cut costs by €81 billion a year by 2030, according to a new report.

The study, carried out by Accenture for Eurelectric, revealed that improving renewable energy systems, increased market integration, more intelligent grid management, and improved demand response could help cut European energy costs.

This would come as the research stated total energy expenditure could be 50 per cent higher in 2030 than current levels (€532 billion in 2012).

Improving the renewable energy systems is said to potentially save up to €20 billion, and increased market integration – the internal energy market – could save up to €27 billion.

Active grid management could cut costs by up to €15 billion, while flattening the demand curve and shifting part of the peak load could result in savings of between €5 billion and €20 billion per year.

Hans ten Berge, secretary general of Eurelectric, said: “A step-change is urgently needed in the restructuring of the European energy system if we are to gain the support and trust of energy consumers without destroying the competitiveness of our industry.

“Our study shows that with the right policies in place, the energy transition could cost each European citizen over €100 less a year than if we continue with business as usual.”

Sander van Ginkel, managing director in Accenture’s utilities strategy practice, added: “This analysis shows the main cause to be the lack of a single European energy market, but also slower than expected cost reduction of some new energy technologies and slower deployment of energy efficiency than envisioned.

“Stakeholders from all sides have recognised the major impact of rising energy expenditure on Europe’s households and industry, and all share a sense of urgency about the issue, but we still see a considerable gap between awareness and action.”