Abstract

The energy system in Europe faces significant challenges. Though, the transition to renewable energy is under way, still a significant portion of energy is supplied from fossil fuels, mainly natural gas. In the second half of 2021, the supply of natural gas and consequently the rate of replenishment of the reserves dwindled. The scarcity of natural gas has resulted in record-high energy prices as well as an increase in goods prices. Especially hit are the industry sectors highly dependent on natural gas such as the petrochemical industry. This research investigates the strategies to mitigate the crisis in the European Union energy system while simultaneously ensuring low energy system cost and fulfilment of energy transition goals. The system analysis and simulations are carried out in the liner optimization model − H2RES. The results display that the system opts for accelerated fulfilment of energy transition goals. Therefore, the dependency on the stable supply of natural gas is decreased. Also, the total cost of an energy system that undergoes transition as compared to the business as usual scenario is 33 % lower even when accounting for the necessary investments by 2050.