A secure and resilient EU energy system? Local stakeholders can help!

Homegrown wind and solar power are becoming a pillar of Europe’s energy system, and a massive electrification of end uses is expected in the coming years.

This paper provides insights the role of local stakeholders – citizens, local authorities, SMEs, etc. – in providing fossil-free flexibility to contribute to energy security and affordability in this fast-moving context, and how it brings local stakeholders to the centre stage of the EU’s energy system. The paper concludes with policy recommendations.

Key messages

1. A decarbonised energy system based mainly on renewable energy and end-use electrification will:

• Make the EU less vulnerable to geopolitical risks and to energy price volatility.
• Increase the share of variable renewable energy sources in Europe’s energy mix.

2. Fossil-free flexibility is a central piece of the puzzle in building a secure, affordable and decarbonised EU energy system. However:

• Financial and political support for fossil based flexibility remains too strong, keeping prices high, while legal barriers and lack of funding slow the deployment of fossil-free flexibility.
• Energy storage is a mature technology, ready for rapid deployment, yet the potential of demand-side flexibility remains largely untapped, despite being cost-effective and free from grid-constraint.

3. Through their key role in fossil-free flexibility and decentralised production, local stakeholders (municipalities, citizens, SMEs, etc.) are crucial for an affordable, secure and sustainable energy system.

4. Microgrids can provide consumers with resilience in the event of grid issues. They can also provide grid operators with a solution for demand-side flexibility and free up grid capacity.

5. They are still many actions that the EU and Member states can take to enable fossil-free flexibility and allow local stakeholders to play their part.

Read the full policy paper.