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Europe’s Energy Crisis: How Green Policies Have Made the EU Dependent on Foreign Gas

Energy - February 3, 2025

In recent years, Europe has positioned itself as a leader in the global push for green energy. The European Union’s aggressive decarbonization policies have sought to replace traditional fossil fuels with renewable energy sources such as wind and solar. While these policies are well-intended, they have inadvertently created a serious energy crisis, leaving Europe highly dependent on foreign gas imports, especially from geopolitical rivals like Russia.

This article examines how the EU’s shift away from domestic fossil fuel production, reluctance to embrace nuclear power, and overreliance on intermittent renewables have exacerbated the region’s energy vulnerabilities. It also explores the economic and political consequences of these policies and the challenges of securing a stable energy future.

The EU has pursued aggressive climate targets, including the phasing out of coal, oil, and even natural gas in favour of renewable energy. Policies such as the Fit for 55 Package and Green Deal aim for a 55% reduction in emissions by 2030 and full carbon neutrality by 2050. However, this transition has moved faster than the development of alternative, reliable energy sources, leading to serious imbalances in the European energy market.

Many coal-fired and nuclear power plants were shut down prematurely, leading to energy shortages. Wind and solar, while expanding, still lack the consistency required for base-load energy supply. Without reliable baseload power, the EU has had to turn to natural gas as a stopgap measure, increasing its dependence on imports. The lack of investment in backup infrastructure has made this situation worse, as power grids struggle to handle fluctuations in supply from renewables. Additionally, industrial energy consumption, which forms a major part of Europe’s economy, has become highly vulnerable to these shifts, leading to production slowdowns and job losses.

Nuclear power is one of the most reliable and low-emission energy sources available, yet the EU’s green policies have largely neglected its potential. Germany’s Energiewende policy, for example, resulted in the closure of its nuclear reactors, only to increase reliance on coal and Russian gas in the absence of sufficient renewable capacity. France, one of the few pro-nuclear EU countries, has struggled with maintenance issues and aging reactors, reducing its ability to export surplus energy. The EU’s regulatory framework has discouraged investments in new nuclear infrastructure, leaving the bloc without a long-term alternative to fossil fuels.

As the EU cut domestic fossil fuel production, it simultaneously increased its reliance on natural gas imports, particularly from Russia. Before the invasion of Ukraine, Russia supplied over 40% of the EU’s natural gas. This created a strategic vulnerability, which Moscow exploited by manipulating gas supplies and prices.

Other major gas suppliers to the EU include:

  • Norway – Reliable but limited in scale.
  • Algeria – Politically unstable, making long-term supply uncertain.
  • United States (LNG) – Expensive and logistically complex compared to pipeline gas.

The European energy crisis has not only led to volatile gas prices but has also severely impacted industrial production. With high energy costs, many European manufacturers have been forced to relocate operations to countries with more affordable energy. Energy-intensive industries such as steel, chemicals, and automotive production have been particularly hard-hit. This ongoing shift could have long-term consequences for Europe’s economic competitiveness, as countries like China and the United States continue to produce goods more affordably.

While wind and solar power are expanding across Europe, their inherent intermittency poses a major challenge. Wind energy can drop to near zero during calm weather, creating sudden shortages. Solar energy is limited by seasonal changes and cloud cover, reducing output during winter months. Battery storage technology, though improving, remains too expensive and inefficient to store energy at the scale needed.

To balance fluctuating renewable energy production, European power grids require stable backup sources. But with coal and nuclear plants being shut down, natural gas has become the default backup. This makes Europe’s entire electricity system highly vulnerable to gas price fluctuations and supply chain disruptions. The overreliance on natural gas as an energy stabilizer has meant that even minor disruptions in supply can have devastating ripple effects, including forced energy rationing in industrial sectors.

Europe’s grid stability issues are exacerbated by the lack of cross-border energy coordination. While some EU countries have robust renewable capacity, others remain heavily dependent on fossil fuels, leading to imbalances in energy trade between member states. The fragmented approach to energy policy has created inefficiencies that further weaken the EU’s ability to manage energy crises effectively.

Europe’s energy crisis has weakened its geopolitical position, making it susceptible to external pressure. Russia’s use of energy as a political weapon became evident when it cut off gas supplies in retaliation for EU sanctions following the invasion of Ukraine. Countries like Hungary, which rely heavily on Russian gas, were reluctant to support EU-wide sanctions, exposing divisions within the bloc. The EU was forced to negotiate emergency LNG deals with Qatar and the U.S., increasing dependency on foreign suppliers at high costs.

As energy prices have soared, public discontent has grown. Protests and political movements opposing aggressive climate policies have gained traction across multiple EU nations. In Germany, farmers and industrial workers have criticized the government for prioritizing emissions targets over economic stability. In the Netherlands, agricultural protests erupted over nitrogen reduction policies that threatened livestock farmers’ livelihoods. Across Europe, populist parties are gaining ground by challenging the perceived failures of current energy strategies. Many citizens are beginning to question whether the EU’s approach to green policies is sustainable or whether it is inflicting unnecessary economic hardship.

For Europe to maintain its climate goals while ensuring energy security, nuclear power must be reintegrated into the energy mix. Investing in next-generation nuclear reactors could provide stable, low-carbon electricity. Small Modular Reactors (SMRs) offer a promising alternative for nations hesitant about large nuclear facilities. EU regulations should be reformed to facilitate new nuclear investments rather than hinder them.

Europe must also reduce reliance on a single supplier by expanding domestic energy production, including natural gas extraction where viable. Strengthening ties with reliable energy exporters such as the U.S. and Norway and investing in long-term green hydrogen projects, though still years from full scalability, would provide additional alternatives.

To balance climate goals with economic reality, the EU must adopt a more pragmatic approach to green policies, avoiding abrupt shutdowns of critical energy infrastructure. Policymakers should prioritize energy affordability and grid stability alongside emissions reductions. A mix of renewables, nuclear, and domestic fossil fuel reserves is necessary to ensure resilience against future crises. Without a significant policy shift, Europe risks further economic decline, deindustrialization, and increased social unrest.

The EU’s green policies, while well-intended, have inadvertently led to an overreliance on foreign gas, increasing vulnerability to price shocks and geopolitical conflicts. By prematurely shutting down stable energy sources like coal and nuclear without adequate replacements, Europe has placed itself in an energy crisis that threatens economic stability and political cohesion.

To secure its future, the EU must adopt a more balanced energy strategy that prioritizes energy security alongside climate goals. This includes reintegrating nuclear energy, diversifying suppliers, and ensuring that green policies do not undermine economic competitiveness. Without such adjustments, Europe risks further crises that could severely weaken its standing on the global stage.