Don't take energy supply for granted

"We rarely dwell on it, without energy our society comes to a standstill. Not only light and heating fail, but also vital processes such as water purification, food production and digital communication are at risk," says Senior Consultant Corporate Finance Rogier Tigchelaar.

Recent geopolitical tensions and the energy transition make it painfully clear that energy security can no longer be taken for granted. Europe faces the challenge of becoming less dependent on foreign energy sources while simultaneously becoming more sustainable.
At the same time, the market is increasingly shifting toward decentralized generation, with sustainable heat and electricity from own or local sources.

The route to energy independence offers opportunities

"Europe wants to become energy independent and greener. Within two years, for example, imports of Russian fossil energy must end. To absorb the loss of Russian gas, Energie Beheer Nederland (EBN) has received permission to extract gas from the North Sea. This is unavoidable for the short term. It helps to keep energy affordable and to create a level playing field for Dutch (manufacturing) industry compared to the rest of Europe, let alone China and the US. The Netherlands and Europe are doing everything they can to increase security of supply and keep energy bills affordable. The development presents numerous challenges, but also offers new market opportunities," said Ronald van Rijn, Managing Partner at JBR.

Security of supply becomes a personal responsibility

"Energy and power supply are increasingly intertwining public and private functions. As energy supply becomes more decentralized, security of supply and continuity becomes more and more an individual responsibility for companies and citizens, with their own facilities and solutions."

Decentralized generation and storage increases risk of domino effect during power outages

"The prolonged power outage in Spain, with an estimated economic damage of some 3 billion euros, shows the vulnerability of the European power grid. It forces organizations to think in (risk) scenarios how to act in case of prolonged power outages or other calamities," states Ronald van Rijn. "The development does not mean only bad news. It also presents a huge opportunity for utility and installation companies to respond to it."

JBR advises companies facing major challenges with questions of corporate finance, restructuring and strategic issues. "We are called in for the questions that keep people awake," both consultants tell us. "We help solve the problems along the way. We do this with a view to the future: which activities should you be involved in now and tomorrow in order to achieve continuity and make money? Because the cards are shuffled again, the chain will look different and users and service providers have to respond to this."

Critical infrastructure protection

“With the Clean Industrial Deal, the European Commission aims to make the economy greener and lower energy prices for businesses.
The goal is to provide as much sustainable, affordable energy as possible. A third aspect has now been added to this: protecting our own energy and data infrastructure,” says Rogier Tigchelaar. “Russia is waging a hybrid war, sabotaging undersea cables and pipelines. And with Trump’s threatening rhetoric toward Europe, no scenario is unthinkable anymore—such as using LNG supplies as a bargaining chip in trade tariff negotiations. ‘The common thread here is that we need to realize that energy security can no longer be taken for granted and is increasingly becoming an individual responsibility. From there, you start thinking in terms of scenarios and taking preventive action to maintain the energy supply.’”

Independent sound

"We like to offer a different, independent sound. We look at the facts. The transition is unstoppable. The challenge is to walk the road from fossil to renewable energy together, with governments, companies and stakeholders jointly looking for solutions that are both economically feasible and ecologically sound," argue Ronald van Rijn and Rogier Tigchelaar. "If not because of climate change, there is an economic and geopolitical need."

Source: Elsevier Weekblad

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