Hormuz crisis adds €90 billion to EU fossil fuel costs

European Commission President Ursula von der Leyen addressed the European Union’s energy security and external dependence during a speech on the “State of the Union” at a plenary session of the European Parliament in Strasbourg.

Operative Information Center-OMM reports that the European Commission press service issued an official statement on the matter.

According to the statement, von der Leyen said structurally high energy prices were seriously undermining Europe’s industrial competitiveness. Recalling that the EU had increased investment in renewable and nuclear energy after ending its dependence on Russian gas, the EU official said the crisis triggered by the closure of the Strait of Hormuz had created an additional €90 billion financial burden for Europe. She stressed that no additional energy volumes had been secured in return for this cost, saying the only remaining solution was to accelerate investment in domestic clean energy sources, including renewables, nuclear power and biomethane.

The Commission president said the EU aimed to double electricity’s share of total energy consumption by 2040 in order to achieve energy independence. Von der Leyen said this step could reduce the EU’s annual fossil fuel import bill by €260 billion and called for faster infrastructure investment to integrate 480 gigawatts of renewable energy capacity awaiting connection to the grid.