Natasa Pilides Says Europe Must Rethink Energy Strategy as Renewables Fail to Cut Costs

Limassol, Cyprus. Former Energy Minister Natasa Pilides has said Europe should reconsider its energy strategy, because rising renewable capacity has not brought the lower electricity costs and calmer markets that were expected. She spoke to maritime and business professionals in Limassol.

The event

Pilides addressed the Cyprus Marine Club’s October Get-Together, held last week at Gazebo Mare in Limassol. More than 100 members, guests and professionals from the maritime, energy and wider business communities attended.

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Her presentation was entitled The Energy Trilemma: Trade-Offs Shaping the European Landscape. Pilides was the first Shipping Deputy Minister of Cyprus and later served as Minister of Energy, Commerce and Industry.

The balance Europe has to strike

Using her experience in government and in business, Pilides discussed how hard it is to reconcile energy security, affordability, sustainability and competitiveness, especially while Europe moves towards cleaner energy. She argued that more flexibility and a better-balanced approach are required to strengthen competitiveness.

In her view, increasing renewable generation by itself cannot resolve the problems of European energy markets. She said European policymaking has largely neglected the need to build suitable supporting infrastructure. As a consequence, she argued, higher renewable capacity has not reduced price volatility, uncertainty or energy bills as anticipated.

Pilides therefore called for a different approach at both European and regional level, in order to correct these weaknesses and improve competitiveness.

Relevance for shipping and energy firms

Her comments were particularly pertinent to shipping and energy companies, whose investment decisions often involve large capital commitments and long-term planning. Pilides stressed that firms in these sectors should keep their investment strategies flexible, so that they can adapt to shifting market conditions rather than staying bound to decisions that could eventually become outdated.