Energy price rises have continued to wreak havoc across the globe. In the EU, they have had a negative impact on both citizens and businesses. They have also affected the economic stability of various states leading to a rising in inflation rates and slow economic growth.
The volatile energy prices are worsened by the unpredictable geopolitical situations of fuel-producing nations. These volatile prices ought to be a wake-up call for the European Union to appreciate the importance of renewable energy and the importance of relying on local sources of energy.
The use of renewable energy will help the region to attain medium and long-term energy security.
Supporting Affordable Prices for Households and Industries
Sustainable energy is the largest source of renewable energy for the region. Plans are underway to further decarbonize residential and industrial heat demands and bio-energy is in the middle of this.
Governments are providing incentives such as tax breaks, cheques, and VAT reductions to encourage households and industries to adopt renewable energy sources. Huge changes have been made to help the economy recover from the effects of the COVID-19 pandemic. This is one of the reasons why governments are finding it hard to spend hugely on subsidizing energy costs.
The rollout of clean bio-energy solutions is crucial to provide affordable and clean energy for both households and industrial use. While some technologies need to be tested in order to deliver the required results, there are many which are ready for rollout.
Energy Beyond Electricity
It is short-sighted to only consider renewable electricity in decarbonization efforts. While it is a fundamental piece, the energy system is made up of much more than just the electricity grid. The best way is to work on a diverse portfolio that will also include other aspects of the energy system such as heating and the transport sector.
Why Biomass is a Key Part of the Solution
It is important to note that biomass prices have also been experiencing an increase. However, this is just a small increase compared to the rise seen in other energy sources. The current increase in biomass price is a side effect of the increase in the prices of gas and electricity which has spiked the demand for biomass. If anything, biomass is acting as a buffer for the price hikes. Without it, energy prices could increase exponentially.