Chris Twomey and Federica Gallina, Partners at Sosteneo, part of Generali Investments, discuss two inescapable energy challenges that Europe has to face: security of supply and system resilience.
Europe’s energy transition has entered a new and more complex phase. What began as a decarbonisation agenda is now defined by energy security – not only in terms of supply, but in the economic viability of the system itself. In this evolving context, infrastructure investment strategies are being fundamentally reshaped.
Why energy storage matters
Despite repeated crises, Europe’s reliance on imported fuels has persisted, with energy imports still accounting for around 60% of EU energy consumption.¹ Recent geopolitical shocks have simply redirected this dependence, replacing one source of imported energy with another. The strategic question is now not just how to generate low-carbon energy, but how to build a system capable of delivering it reliably, efficiently and competitively.
The answer lies in accelerating domestic clean energy deployment while transforming the infrastructure that supports it. However, this is not just a question of building more generation capacity. The rapid expansion of wind and solar has shown that the energy transition now needs to make this healthy renewable supply work effectively within the system.
Renewables-led power systems are inherently more complex. Their intermittent nature introduces volatility into electricity markets, including increasing periods of very low or even negative pricing. In Spain, for example, power prices have been negative for approximately 10% of total hours in recent periods. This creates operational challenges for energy systems and in this environment, flexibility becomes the defining requirement.
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