Europe’s chemical industry stands to benefit in the long-term from the expansion of wind, solar and other low carbon methods of producing energy.
- Growth in renewables means spot electricity prices can turn negative if demand dips
- Europe electricity prices higher than pre-war as tied to price of natural gas, now mainly LNG
- Europe has seen significant growth in solar, while wind faces delays due to supply chain issues
- Decarbonizing includes reducing emissions from gas plants via carbon capture and storage (CCS) and other technologies
- Challenges include grid infrastructure to transport electricity across regions with varying renewable generation
- Despite regulatory hurdles, there is political will for grid investment as part of the energy transition
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