Charging the future: The new frontier to ignite energy security and innovation in Europe

Undoubtedly, revolutionising and digitalising the energy sector bestows unique challenges and opportunities. Constituting a complex sector, the energy domain inherently requires multifaceted approaches, encompassing geopolitical, economic, social, technical and environmental dimensions. This article will first outline challenges hindering the uptake of innovation in the European energy sector, particularly considering the extent to which energy is interrelated with security. Next, it will illustrate recommendations to stimulate energy security and innovation in Europe from the prism of international collaboration enabling the adoption of holistic, citizen-centered solutions.

Powering through: Navigating Europe's energy innovation roadblocks

Innovation in the European energy sector faces several obstacles. Transitioning to innovative and sustainable energy systems requires significant upfront investment from both public and private sectors. Disrupted supply chains hinder the development and deployment of new energy technologies, while available energy infrastructure has to be appropriately adapted to integrate new, decentralised forms of energy generation. Slow or incomplete implementation of digitalisation initiatives, coupled with the persistent disconnect among energy providers and consumers impairs the adoption of novel technologies. Furthermore, complex regulatory frameworks and market structures restrict the full potential of digital technologies in the energy sector. Aforementioned barriers hinder innovation and the adoption of novel technologies, which are crucial for the energy sector's transition towards sustainability and efficiency.

Illuminating Europe's energy innovation challenges

Europe’s multifaceted innovation challenges in the energy sector encompass electrification, grid interconnections, storage systems, and the integration of renewable energy sources. Considering the substantial volume of energy imports, the urgency for energy autonomy challenges policy objectives and market stability. Strengthening domestic production capacity and diversifying supply chains for clean energy technologies entails the potential to circumvent energy dependencies, thus addressing skills gaps and shortages that currently curb growth in the domestic clean energy sector. Interconnected strategies and measures could increase the EU’s energy autonomy.

The fundamentally intertwined nexus between energy and security

Energy is inextricably linked to security. With energy catalysing economic activity, disruptions in energy supply can cause economic instability. As dependence on energy imports increases vulnerability to geopolitical pressures and supply disruptions, energy infrastructure is critical to security and sovereignty. Beyond climate and environmental security challenges, the impact of the energy sector can have long-term implications for national and global security with energy poverty triggering social unrest and diminishing citizen welfare. Hence, sufficient and affordable energy supplies are crucial for national security.

Securing the grid: The new era of integrated energy security

The interrelatedness between cybersecurity and energy assumes greater significance with the increasing reliance of the energy sector on digital technologies. The digitalisation of the energy sector renders cybersecurity essential to protect energy infrastructure, including power plants, grids, and other critical components from cyberattacks, as cyber threats could impact the operational safety and reliability of energy systems. Innovating with renewable energies and smart grid technologies increases security risks stemming from cyberattacks targeting energy generation, transmission, and distribution systems, leading to power outages and affecting national security.

Additional security risks comprise theft of sensitive data, damage to infrastructure resulting in significant economic losses, and overall disruption for political leverage. Such risks highlight the significance of robust cybersecurity measures and a culture of security awareness to protect against and mitigate the impact of cyber threats. Implementing Security by Design (SbD) in the energy sector integrates security measures at every stage of the product and system development life cycle. Fostering a culture of security awareness among employees would ensure adherence to best practices, given that security by design requires continuous attention and comprehensive approaches with the participation of all relevant stakeholders, tailored to the specific needs and context of each organization. Overall, cybersecurity is integral to ensure the energy sector's resilience, reliability, and trustworthiness vis-à-vis evolving cyber threats.

The full circuit: Embracing holistic energy solutions

Holistic solutions are particularly significant in the energy sector for a plethora of reasons. Complex and interconnected energy systems require comprehensive strategies to ensure efficiency, reliability, and security. The energy sector’s rapid evolution with the integration of renewable energy sources, smart grids, and digital technologies requires holistic approaches to balance the energy trilemma of providing secure, affordable, and environmentally sustainable energy. Holistic solutions are essential to seamlessly integrate energy innovation within the existing infrastructure and comply with intricate regulatory requirements. Furthermore, given the critical nature of energy infrastructure, a holistic approach integrating cybersecurity is necessary to enhance the resilience of energy systems against natural disasters, technical failures, and other disruptions.

Engaging stakeholders, ranging from consumers, regulators, and suppliers, to citizens, ensures that all perspectives are integrated equitably in decision-making. Solely by implementing holistic approaches, the energy sector can address current multifaceted challenges and opportunities in a coordinated and effective manner, leading to improved outcomes for all stakeholders.

Citizens as catalysts in energy innovation

Empowering citizens as prosumers requires business model innovation to enable collective investments in local energy projects and shared ownership of energy production. Democratising access to information and education on energy efficiency promotes sustainable practices. In this context, policy frameworks incentivising citizen participation and investment in renewable energy sources are essential to foster citizen participation in renewable energy production, thus co-creating a shared and sustainable vision for the energy sector. Harnessing the collective power of citizens to drive innovation and enhance sustainability would ensure a more resilient energy system.

The charge for cyber innovation in European energy

Fostering cybersecurity innovation in the European energy sector should interlink policy development, multi-stakeholder collaboration, and technological advancement. Beyond aligning directives and strengthening Public-Private Partnerships, substantial investment in R&D is required to tailor cybersecurity frameworks and solutions to the energy sector. Results-oriented stakeholder collaboration should be coupled with the accessible provision of educational and training programs, not only developing a skilled workforce but also ensuring its impactful and smooth integration in the job market. Increasing funding and resource allocation for multidisciplinary innovation hubs, incubators, and accelerators would nurture substantially the development of novel technologies, e.g. by joint project development integrating cybersecurity in the energy sector.

Collaborations at European and international level can extend beyond sharing best practices and standards for interoperability to jointly testing and deploying novel technologies and conducting regular, e.g. cybersecurity, exercises and simulations ensuring preparedness. Leveraging skills, strengths and resources of diverse countries and organizations establishes a thriving ecosystem that encourages innovation in energy and cybersecurity, thus ensuring a secure and resilient energy infrastructure. The ensuing development of joint approaches and inclusive engagement entails the potential to accelerate the transition to cleaner energy and net-zero emissions at a faster pace and with lower costs thanks to shared resources and capabilities. In this context, green entrepreneurship presents a driving force for a more innovative and sustainable energy landscape, creating new markets and job opportunities in the emerging green economy. Beyond the growing consumer demand for sustainable and eco-friendly products, green entrepreneurs bring to market compliant and innovative solutions, thus fostering a culture of innovation, which is essential to address the pressing environmental challenges of our time in combination with a more sustainable and resilient economy.

The energy odyssey: Navigating the evolution of energy

In conclusion, the future outlook for the energy sector in Europe is multifaceted and dynamic, with several key trends co-shaping the energy landscape, such as geopolitical tensions, cybersecurity, and green entrepreneurship. Overall, the energy transition can be boosted and accelerated with holistic and citizen-centric solutions. Prioritising the strategic rollout of the transition to cleaner energy forms, Europe can create a more resilient, sustainable, and secure energy system that is better equipped to meet the challenges of the future. While the European energy market is projected to grow by diversifying energy supply and enhancing energy efficiency, autonomous endpoint management in the cybersecurity domain would unify AI with IT operations and security teams. Europe strives to position itself at the forefront of deep-tech innovation to address societal challenges, with GreenTech emerging as one of the core growth areas in the innovation and startup space. Overall, Europe is poised to continue its progress in these areas, with a strong emphasis on sustainability, security, and innovation. Leveraging and aligning policy initiatives, technological advancements, and collaborative efforts would ensure a resilient, sustainable, and innovative future.

About the author

Alexandra Garatzogianni is Head of Knowledge and Technology Transfer at the Leibniz Information Center for Science and Technology (TIB) and Coordinator of EU-funded projects in Innovation and Entrepreneurship at the Leibniz University of Hannover (LUH). As a purpose-driven Executive, Alexandra (MSc in Innovation and Entrepreneurship by HEC Paris, MBA by the Heriot-Watt University, Edinburgh Business School, Postgraduate Executive Diploma in Management Consulting by Grenoble Ecole de Management) is a strong believer in the transformative capabilities and dynamic potential of innovation ecosystems, entrepreneurship and citizen science while being particularly motivated to tackle challenges and wicked problems. She co-leads the Leibniz Joint Lab Data Science & Open Knowledge among TIB, LUH and the L3S Research Center, and supports the commercialisation of research. She worked at the Fraunhofer Society as project leader of European and national industrial projects for the delivery of marketable research products, prototypes and pilots. She has 10+ years of experience working as a mentor, evaluator, and consultant for data- and techpreneurs.

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Neither the European Commission nor any person acting on behalf of the Commission is responsible for the use that might be made of the information in the article. The opinions expressed are those of the author(s) only and should not be considered as representative of the European Commission’s official position.

Details

Publication date: 24 May 2024
Author: European Climate, Infrastructure and Environment Executive Agency