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Securing Europe’s Energy Supply: Experts Warn of Risks and Solutions to Ensure Stability

AFP

NOS Nieuws•vandaag, 17:00

  • Rolf Schuttenhelm

    editor Climate and Energy

  • Rolf Schuttenhelm

    editor Climate and Energy

Accelerating sustainable energy while retaining the option to extract oil and gas yourself. It seems contradictory, but the Netherlands and Europe would do well to strengthen our security, experts tell NOS.

That security is at risk, and society must expect the unexpected, NATO Admiral Rob Bauer warned in January. Such an unexpected event occurred September 26, 2022, when the Nord Stream pipeline was blown up. What if that happened at the bottom of the North Sea? Gas flows there from Norway, which accounted for 30 percent of European demand last year.

An even larger share, 42 percent, now reaches Europe by ship, as liquefied gas (LNG). “There are also bottlenecks in the LNG trade, where transit can be paralyzed,” warns energy expert Jilles van den Beukel, from The Hague Center for Strategic Studies (HCSS). “Like the Strait of Hormuz.”

The strait is the narrow terminus of the Persian Gulf, between Oman and Iran. In the event of war, tankers are easy prey. Then not only the supply of LNG from Qatar will stop, but also oil from Kuwait, the Emirates, Iraq and Saudi Arabia. This is already happening at another tanker bottleneck in the Middle East: the Red Sea. Due to attacks on ships by the Iran-affiliated Houthi rebels, 70 percent fewer LNG tankers are sailing via the fastest route to Europe.

NOS

How can the Netherlands and the rest of Europe arm themselves against such risks to the energy supply? The solution consists of a large number of puzzle pieces, says energy expert Georg Zachman of the Brussels think tank Bruegel. The first step is obvious: protect infrastructure. And it helps to have greater energy stores. For example, the Netherlands has four underground gas storage facilities. At the end of winter they are still half full – about enough for a quarter of our annual gas use.

The Netherlands also has a “strategic oil reserve”, managed by the Central Petroleum Products Stockpiling Agency (COVA). The aim is to make fuels available in the event of disasters, including war. Since 2019, the COVA stock requirement has been at the EU minimum. That’s enough for 61 days of fuel consumption.

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Major conflicts can sometimes last longer than a few months. That is why Europe would do well to also maintain ‘back-up capacity’, says Zachman. “For example, by keeping production possible in old mines and gas fields, such as in the Netherlands.”

The Groningen gas field was once the largest in Europe. After the production stop in January, there is still an estimated 450 billion cubic meters of gas in the ground. In an absolute emergency scenario in which Norwegian natural gas and LNG fail, this could temporarily provide a basic gas supply to Northwestern Europe.

But on Wednesday it became known that several parties want to fill the last wells with concrete early. Even in a war situation, extraction is no longer possible. “It would be wiser to keep this infrastructure for the time being,” says Van den Beukel critically.

Digital attacks

‘Expect the unexpected’ was also the title of one last year rapport about cybersecurity, from the National Coordinator for Counterterrorism and Security (NCTV). It warns against digital attacks on our energy system. In 2022, a German wind energy company was hacked. In the Netherlands, the consequences were minor: five wind turbines were temporarily unable to test run. But the incident serves as a warning: companies must also have their digital security in order.

Accelerate sustainability

The experts emphatically do not argue for a fossil renaissance. On the contrary, Zachman says, “The switch to sustainable energy makes us more resistant to external influences.” But we are currently still more than three-quarters dependent on fossil sources, largely from outside Europe.

If we want to reduce that share faster, we must shorten permit processes, says Olof van der Gaag, chairman of the Dutch Association for Sustainable Energy (NVDE). “It often takes eight years of talking, two years of building. While during the height of the gas crisis in 2022, no time an LNG terminal was in the Eemshaven. So it is possible. We should use that approach for the entire transition, including strengthening the power grid.”

The puzzle also becomes easier if we can make do with less energy, says Van der Gaag. Companies are obliged to take energy-saving measures that will pay for themselves financially within 5 years. “We think that there is still a lot to be achieved by enforcing this, just like the label C obligation for offices. 40 percent do not comply with this.”

According to Van der Gaag, the payback period for the savings obligation could also be extended to 7 years. In that term, it will also pay off for companies to invest in sustainable energy. “That standard is often adhered to for consumers, so why not also for companies.”

Fuel coupons

If the energy supply declines sharply, scarce supplies will have to be distributed. For this purpose, there is one of the emergency laws in the Netherlands in the event of disasters and war: the Distribution Act, from 1939 – which can provide for a voucher system. State emergency law must be urgently modernized, says emergency law expert Adriaan Wierenga of the University of Groningen. “But the core of the Distribution Act can still provide a solution for the distribution of scarce goods.”

2024-03-07 16:00:33
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