Energy is once again dominating headlines all over the world. Gas and oil prices are volatile, key shipping routes face geopolitical pressure, and policymakers are concerned about supply risks.
The renewed uncertainty is a reminder of an uncomfortable reality: the next energy crisis isn’t an if – it’s a when, and a question of how prepared we are.
A defining challenge of this decade, and one that now feels more urgent than ever, is how to build a resilient energy system. One that minimises structural dependencies and is designed for rising electricity demand.
The imperative of our time: The more we electrify, the less we import fossil fuels. The less we import, the more resilient we become.
The course of action is clear:
- Relentlessly scale renewables: Slowing the buildout will not reduce costs. Quite the opposite – delay compounds system costs for the entire economy.
- Fix the grids: As fast as possible, as efficiently as possible, and at the lowest possible cost. Before they become even more of a bottleneck.
- Secure 24/7 electricity supply: When the wind isn’t blowing and the sun isn’t shining, renewables need reliable backup in the form of battery storage and hydrogen-ready gas fired power plants. But gas should serve only as a backup, with renewables and batteries reducing its utilisation.
- Reduce gas supply dependence with infrastructure and diversification: We must not replace old dependencies with new ones. Diversification of gas supplies is key. And the physical prerequisite is an import infrastructure with buffers. We need the planned LNG terminals, complemented by a nationally held gas reserve to help ensure secure supply in winter.
- Electrify everything that makes sense: The more we can power with mostly homegrown electrons, the less dependent we become on fossil imports. Other energy import-dependent countries like Japan and China have electrification rates that are around 10 percentage points higher than Germany’s. This shows where the path forward lies. Electrification reduces reliance on imported fossil fuels, which in turn strengthens overall resilience.