Europe needs to invest up to one trillion euro in the energy sector so that the Old continent will be able to meet the required decarbonisation target, according the European Commission estimates.
Some experts believe that a market model is needed to channel out the necessary funds to decarbonise the power sector in the most efficient and effective way – at an affordable price, while protecting the competitiveness of Europe and ensuring security of supply.
In the United Kingdom for instance, the British government estimates that £110 billion of investment will be needed to deliver secure, reliable, diverse and sustainable low-carbon power for Great Britain.
The current market arrangements will not deliver this investment, say British officials, underscoring the importance of the “electricity market reform” which has been put forward to attract the investment needed to replace our ageing energy infrastructure and meet the projected increase in electricity demand.
The decarbonisation of the power sector means reducing its carbon intensity and toxic emissions. A gradual decarbonisation can be achieved by increasing the share of low-carbon energy sources, such as renewable energies and nuclear power.
