As we work with Clients across a dozen different industries - reading and analysing global and financial forecasts are part of our daily routine at WORKPLUS GLOBAL - Custom Solutions.
We recently ran into an interesting summary by Goldman Sachs on the future of European Energy Structure.
Please read below and take a minute to observe.
The tensions between Russia and the rest of Europe over natural gas flows have underscored the unsustainability of the continent’s energy system. With the right mix of infrastructure investment, Europe can emerge from the upheaval with a system that is cheaper, achieves the region’s net-zero carbon emissions goals and is more secure, according to Goldman Sachs Research.
• It will take €10 trillion of investment by 2050 for Europe to transform its energy infrastructure, according to Goldman Sachs’ Carbonomics framework. The spending is estimated to eventually pay for itself from savings on energy imports.
• The new system would be more affordable. The energy costs for the average European consumer could be cut by 40% versus prices in 2021 (and by 60% compared to the expected peak this year).
• Natural gas is going to be a key part of Europe’s energy supply for the next 20 years, and long-term contracts for liquefied natural gas (LNG) would strengthen energy security and allow a new generation of LNG projects to be developed for Europe.
• Renewable power will be at the heart of the future energy system. Seasonality and the energy requirements for transportation and heavy industry mean that green hydrogen will also be a key component and will eventually make up 15% of the energy system.
Good Luck Everyone!