Von der Leyen: EU energy prices two to three times higher than in the US and China, calls for accelerating grid and storage expansion

en.Wedoany.com Reported - European Commission President Ursula von der Leyen said in Paris that high energy costs have become a major factor constraining Europe's competitiveness, and the solution lies in expanding domestic low-carbon energy production, accelerating renewable energy deployment, while simultaneously strengthening the power grid and storage facilities.

Von der Leyen made these remarks while attending the French business conference (Ref) at Roland Garros in Paris. She told entrepreneurs from the French employers' association (Medef) that EU energy prices are currently two to three times higher than those in the United States and China. More than half of the energy consumed in the EU comes from imported fossil fuels, and since tensions escalated in the Middle East, this dependence has cost Europe over €50 billion in additional expenditure.

She proposed that Europe must replace imported fossil fuels with domestically produced low-carbon energy, while simultaneously advancing the development of renewable energy and nuclear power.

In the electricity sector, low-carbon power already accounts for more than 70% of Europe's electricity generation, but electricity represents only about a quarter of final energy consumption. Von der Leyen called for accelerating the electrification of industry, transport, and buildings to replace direct fossil fuel use. She also noted that European businesses still pay electricity prices averaging nearly three times the price of natural gas, and therefore argued that electricity should not be taxed more heavily than natural gas, while long-term power supply contracts should provide businesses with clearer expectations.

Grid bottlenecks are the most prominent structural issue at present. The EU added more than 80 gigawatts (GW) of new renewable energy capacity last year, while the capacity queuing for grid connection is roughly six times that figure, approximately 480 GW. Due to lagging grid and storage development, some generated renewable power cannot be utilized.

Von der Leyen called for accelerating investment, speeding up grid connection processes, developing storage capacity, and making fuller use of existing infrastructure. In her view, Europe's energy transition is entering a new phase: merely installing wind farms and solar photovoltaic plants is no longer sufficient to sustain the transition; renewable energy expansion must be matched by transmission networks, storage systems, and a higher degree of electrification. She stated that these actions should serve the EU's 2050 climate neutrality goal, and that decarbonization and industrial competitiveness can reinforce each other. "We are not choosing between climate and industry," Von der Leyen said. "We are making the transition the engine of a stronger European industry."