It should “take years” to return vitality costs to pre-Ukraine conflict ranges, the boss of one of many world’s greatest vitality corporations instructed the BBC.
Enel’s Francesco Starace mentioned the value discount depends upon new vitality sources corresponding to renewables and warmth pumps.
Governments throughout Europe are spending billions to assist companies and households pay their vitality payments.
They’re additionally in search of new provides.
Starace mentioned the corporate, which produces and distributes electrical energy and fuel, is attempting to guard its 20 million European prospects from the volatility of the vitality market this yr.
It does its finest to stay to the fixed-price contracts it has agreed to, he mentioned.
Breaking buyer confidence can do extra injury to an organization than a success to a yr’s outcomes, he mentioned.
The Italian vitality large sells energy to greater than 70 million houses and companies in additional than 30 international locations.
However Enel plans to go away most international locations because it focuses on renewable vitality and can be carbon impartial by 2040.
It additionally needs to chop large money owed of round $63bn (£52bn).
It’s investing closely within the manufacturing of photo voltaic panels because it expands an present manufacturing unit in Sicily and builds a brand new one within the US.
Rising vitality costs are the largest contributor to inflation and the price of residing disaster within the UK, US and eurozone.
The worldwide vitality disaster attributable to Russia’s invasion of Ukraine “reveals clearly how dependence on one supply of vitality is harmful for Europe”, Mr Starace mentioned.
The long run can be “extraordinarily decarbonized” and rely upon nuclear and renewable vitality, he mentioned.
Nevertheless, that shift to renewables additionally comes with dangers.
In July, the Worldwide Power Company mentioned China’s dominance in photo voltaic and wind turbine manufacturing created “potential challenges that governments should tackle”.
Starace mentioned the West is just too depending on China for renewables and different items.
“Some balancing has to occur as a result of it is wholesome,” he mentioned, when requested about geopolitical tensions disrupting vitality provides.
This has helped drive Enel’s funding in photo voltaic panels, though the Sicilian manufacturing unit growth will solely meet 10% of Europe’s wants, he mentioned.
Political leaders additionally acknowledge that Europe should draw its power from many areas.
In keeping with the European Council on International Relations, the EU and its member states signed 56 vitality offers with 23 international locations this yr.
Among the many newest is a 15-year settlement for Germany to acquire liquefied pure fuel (LNG) from Qatar by a contract with ConocoPhillips.
Norway can also be ramping up pure fuel manufacturing and the world’s largest producer, the US, is pumping in document quantities.
Which means that the probabilities of Europe repeating its reliance on Russia in a foreign country are “very low”, based on Megan Richards, a former director of vitality coverage on the European Fee.
“Lots of work has been accomplished” to interchange Russia’s energy, he added, earlier than warning: “I feel Europe is not going to be utterly impartial inside for a very long time, if attainable” even when “the modifications will improve vastly”.
You’ll be able to watch Francesco Starace’s interview in full on Speaking Enterprise with Aaron Heslehurst at BBC iPlayer.
