Europe’s sovereignty, competitiveness, security hinges on rapid electrification – Birol
Clean Energy Wire
Europe should elevate energy security to the level of national security, said the head of the International Energy Agency (IEA), Fatih Birol, at an energy conference in Berlin. “Europe’s sovereignty, competitiveness and security will critically hinge on what kind of energy-related decisions we take,” Birol said at the Handelsblatt Energy Summit.
“I have never, ever, seen geopolitics being so dominant in the energy sector – throughout the entire energy sector,” Birol added. “The long and dark shadow of geopolitics is very visible.” The IEA head said that Europe’s strategy to boost competitiveness, security and foreign policy should be the cost-effective electrification of its economy, arguing that Europe’s future will depend on the success of this effort.
Uncertainties created by current geopolitical tensions are being amplified by technological change, Birol argued. Given the continent’s lack of gas and oil reserves, electricity would be the clear path forward for Europe to ensure a reliable energy supply in the future. The fact that at Europe’s electricity share in total energy use - about 20 percent - was similar to that of fossil fuel exporting countries should be seen as a major mistake, Birol added
Turning to Germany, Birol said that the country’s most urgent task is to prioritise its electricity grid expansion, adding that having ready renewable projects stuck in grid connection queues is “economically criminal.” He said the country should also introduce new incentives for electricity use in industry, buildings and transport, and reform its system of taxes and levies on energy.
The economic reset promised by chancellor Friedrich Merz remains a work in progress nearly a year into the government’s term. Geopolitical tensions, trade disputes and a sluggish economy are increasing pressure to deliver results ahead of state elections in which the far right could make significant gains.
In the EU, 2025 was marked by rollbacks of existing climate rules – from weakening deforestation regulations and company sustainability reporting obligations, to postponing emissions trading in transport and buildings. EU climate and energy policy enters a decisive phase in 2026, as the European Commission prepares post-2030 rules and reviews emissions trading, and member states and the European Parliament negotiate the next long-term budget.