Winds of change: Europe needs to take its green energy sovereignty seriously
Donald Trump’s diatribe against what he called the climate change “hoax” this week is more than just hot air – a sceptical approach towards green energy from the US and its president is already having serious economic ramifications globally. Even Danish state-backed energy giant Ørsted, which includes a major renewables component, has been affected. It was rescued by an €800m injection of capital from Norway’s Equinor at the start of the month after planned US wind projects were cancelled. With one energy consultancy predicting that renewables projects will drop by nearly a quarter over the next decade, European governments need to start taking their sovereign energy security seriously.
The fact that Europe is expanding its capacity is a positive step. Vladimir Putin’s invasion of Ukraine showed how energy sufficiency is a keystone of national security. Renewables are the future, not only for their environmental benefits but also because they allow countries without fossil fuels to become energy producers – and therefore not politically and economically beholden to other nations.
Turkey, for example, has almost no gas or oil but is currently the sixth biggest wind power producer in Europe and plans to quadruple its renewable energy output by 2035. Recent changes to planning laws have lifted much of the red tape on wind farms. One aspect that is holding Turkey back, however, is its dependence on imports of wind turbines. Meanwhile, many of the country’s turbine component makers have chosen to focus on exporting rather than on the domestic market.
This is an Achilles heel for all of Europe. China has recently risen to the top of the wind turbine manufacturing charts, with the world’s top four companies all hailing from the People’s Republic. The Chinese-made technology might be cheaper than the rest of the pack but Brussels fears that it could undercut the continent’s domestic production. Last year, the European Union’s antitrust commissioner launched an investigation into subsidies given to Chinese firms that are supplying wind turbines to countries within the bloc.
With words such as sovereignty and independence back on European leaders’ lips, especially when it comes to defence, the continent needs to start thinking along the same lines when it comes to renewables. Wind farms that are entirely equipped and serviced by foreign companies or their local subsidiaries not only make Europe vulnerable to geopolitical uncertainty and supply-chain wobbles but also provide fewer benefits to local economies.
Though the US’s industry might be politically stymied for years to come, this is one sector where Europe can forge ahead. Ørsted has taken a blow from the cancellation of its US projects but it is still the biggest developer of wind farms in the world, largely thanks to the country’s nationalised renewables structure, which has nurtured an industry that does everything from R&D to operation. Turkey and its European neighbours can lead the world into a renewables future and boost their own economies and security while doing so. They need to start by building the foundations at home – otherwise their transitions could be blown away.
Hannah Lucinda Smith is Monocle’s Istanbul correspondent. For more on Turkey, read about Istanbul’s secret village. To dive deeper into Europe and energy, here’s our interview with the CEO of Swedish energy firm Vattenfall. For more opinion, analysis and insight, subscribe to Monocle today.
