Episode
76

Energy and Industry in Europe with Henning Gloystein

March 15, 2023
|
Duration:
1753547
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In This Episode:

Join David Arkell, John Pooley, Lysandra Naom, and Henning Gloystein, Director of Energy & Natural Resources at Eurasia Group, on an episode all about the European energy and industry relationship. This episode features mitigating high energy pricing, efficiency gains, reducing carbon emissions, and more. Check out our 360 Carbon Excellence Program.

Highlights

  • Impact of High Energy Prices on Industry: European manufacturers face steep energy costs, prompting them to adopt energy-saving measures such as optimizing temperatures and reducing operating hours to remain viable.
  • Government Support for SMEs: Large companies can often invest in efficiency upgrades or access subsidies, but SMEs face greater challenges, particularly in nations with limited governmental support.
  • Geopolitical Energy Risks: The energy crisis has exposed Europe's reliance on foreign energy sources, prompting efforts to diversify energy supplies, especially away from Russian fossil fuels.
  • Energy Security as National Security: Energy security has become a critical national security issue, with privatized energy sectors balancing market dynamics and government policy interventions.
  • Advances in Distributed Energy Systems: Instability in energy markets has driven increased adoption of local generation systems like rooftop solar, EV charging infrastructure, and industrial-scale renewable energy investments.
  • Key Insights

    • Efficiency Improvements Under Pressure: European industries reduced energy usage by approximately 20% in 2022 without significant output declines, highlighting a shift toward more energy-efficient production methods.
    • Support for SMEs Essential: SMEs play a pivotal role in employment and GDP, particularly in nations like Germany, Italy, and France. Their adaptation to energy challenges is critical for maintaining economic stability and driving innovation.
    • Local Renewable Investments by Industry Giants: Major companies, such as BASF, are investing in renewable energy projects to secure their energy supply and mitigate exposure to volatile energy markets.
    • Focus on Resilient Energy Supply Chains: Europe is diversifying its energy supply chains to align with geopolitical interests, emphasizing partnerships with stable and allied nations.
    • Role of Incentives in Advancing Energy Efficiency: Government subsidies for efficiency measures, including smart meters and renewable energy infrastructure, are key to promoting energy efficiency across both residential and industrial sectors.
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