1. Europe is at risk of losing its first-mover advantage in the energy transition due to competition from the US.
2. Grid orchestration and flexibility may be key for Europe to maintain its competitiveness.
3. Regulation, investment incentives, and tech advancements are factors influencing the energy sector’s competitive landscape in Europe and the US.
Europe has been a pioneer in the energy transition towards net zero, but the US is catching up quickly with initiatives like the Inflation Reduction Act. A report by Enlit suggests that Europe may have already lost its first-mover advantage in the energy sector. Grid integration has become a challenge for Europe, as the focus has been primarily on renewables.
Grid operators in Europe are struggling to keep up with the transition, leading to delays in new connections and grid reinforcement. The US, on the other hand, has the opportunity to surpass Europe with investment incentives following the IRA. Regulation is seen as a core reason for Europe potentially losing its lead in the energy sector.
European countries have the potential to maintain their competitive edge by focusing on grid orchestration and flexibility in the energy market. Tech players entering the energy sector could create a game-changing grid orchestration platform that integrates various assets. This could give Europe an advantage over the US, which lags behind in this aspect. Early movers in implementing these tech advancements are likely to benefit significantly.