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Title page 1

Contents 2

Acknowledgements / Disclaimer 2

Executive summary 4

1. Introduction 6

2. Europe's predicament: decarbonisation with high energy prices and low security 7

3. Course correction needed on Europe's path to net zero 12

4. Doubling down on the logic of green energy investment and electrification 14

5. No transition without transmission and distribution: the role of flexibility, grids and storage 16

6. Putting Europe's clean tech industry back in the game 19

7. Making the supply equation add up: The nuclear component 23

8. Preserving the role of the market 25

9. Acting before the damage is done: risk-preparedness and resilience 27

10. Conclusions 30

Endnotes 31

Figures 8

Figure 1. ESTIMATED ELECTRICITY PRICES PAID BY LARGE INDUSTRIAL CUSTOMERS (IN EUR/MWH) 8

Figure 2. EXPECTED EVOLUTION OF ENERGY PRICES IN EUROPE TOWARDS 2030 (IN EUR/MWH) 9

Figure 3. CLEAN TECHNOLOGY MANUFACTURING CAPACITY BY REGION, IN PERCENT (2021) 10

Figure 4. OFFSHORE WIND PROJECTS IN THE BALTIC SEA CANCELLED DUE TO SECURITY CONCERNS 11

Figure 5. TRANSITION OF THE EU POWER MIX UNDER THE 2050 NET-ZERO SCENARIO 20

Figure 6. SOLAR PV MANUFACTURING CAPACITY BY COUNTRY AND REGION, 2010-2021 (IN % OF GLOBAL CAPACITY) 21

Figure 7. INSTALLATION OF EV CHARGING INFRASTRUCTURE 22

Figure 8. TOTAL OPERATING REACTORS VERSUS REACTORS UNDER CONSTRUCTION (MWE NET CAPACITY) 24

Figure 9. GLOBAL DEMAND FOR LITHIUM, COPPER, COBALT AND NICKEL IN THE NET ZERO SCENARIO 2023-2040, IEA 28

Boxes 6

BOX 1. OVERCOMING EUROPE'S ENERGY TRILEMMA 6

BOX 2. CLEAN ENERGY SHOCK THERAPY: HOW EUROPE ANSWERED RUSSIA'S ENERGY WAR 7

BOX 3. A SNAPSHOT OF EUROPE'S CLIMATE AND ENERGY EQUATIONS THAT DON'T ADD UP 13

BOX 4. ENERGY SYSTEM INVESTMENT NEEDS 2030-2050 15

BOX 5. EUROPE IS LOSING NUCLEAR GROUND 24

BOX 6. AN UPDATE ON THE EU'S 2023 ELECTRICITY MARKET REFORM 26