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Europe’s Renewable Energy Wasted Amid High Oil Prices and Outdated Grid Infrastructure

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Europe is facing a paradox of soaring energy costs and wasted green power, as the war on Iran continues to expose the continent’s dependence on fossil fuels. While Brent crude, the world benchmark for oil prices, dipped yesterday morning (26 March) amid hopes of de-escalation, barrel prices have repeatedly exceeded $100 (around €86.38) since the conflict began. Before the US-Israel war on Iran, oil traded below €63 per barrel. Analysts say the surge is largely driven by the effective closure of the Strait of Hormuz, one of the world’s most critical fossil fuel chokepoints, responsible for roughly a fifth of global oil supplies.

Oil price volatility has pushed petrol and energy costs across Europe higher, prompting calls for increased North Sea drilling. However, research from the University of Oxford suggests expanding domestic oil and gas production would only save UK households up to £82 (€95) annually. By contrast, a fully renewable-powered UK could cut bills by up to £441 (€510) a year.

Despite rising geopolitical risks underscoring the appeal of green energy, Europe continues to waste enormous amounts of renewable electricity. Last year, Britain wasted £1.47 billion (around €1.78 billion) by curtailing wind turbines and paying gas plants to compensate. On 25 March alone, wasted wind cost the UK over £1.31 million (€1.5 million), with £95,091 (€109,831) attributed to curtailment and the remainder to purchasing replacement energy, mostly from fossil fuels. In Germany, curtailment compensation reached €435 million in 2025, down 22 percent from 2024 (€554 million), illustrating the scale of unused renewable power across the continent.

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Energy experts point to Europe’s outdated infrastructure as a major factor. Much of the grid was designed for coal and later gas plants, sending power from central locations to population centers. Modern wind farms, however, are often offshore or in remote areas, making electricity transport more difficult. “When wind speeds are too strong, the grid becomes congested and the energy can’t reach where it’s needed,” says Octopus Energy. “This forces payments to switch wind turbines off and produce replacement power, often from fossil fuels.”

Aurora Energy Research warns that Europe’s grid bottlenecks now threaten Net Zero ambitions. Congestion management costs approached €9 billion in 2024, with 72 TWh of mostly renewable energy curtailed, roughly equivalent to Austria’s annual electricity consumption. Despite a 47 percent increase in grid investment over the last five years, experts say it remains insufficient.

In response, the UK government announced trials to provide discounted or free electricity on windy days in constrained areas. Greg Jackson, CEO of Octopus Energy, welcomed the initiative but cautioned that temporary trials may have limited impact. He argues permanent measures would encourage households and businesses to invest in electrification technologies, such as heat pumps, batteries, and electric vehicles, allowing surplus renewable energy to be used more effectively.

Europe’s outdated and under-invested energy grid means huge amounts of renewable energy are wasted every year. The case for renewable energy is stronger than ever, as the war on Iran continues to highlight the dangers of fossil fuel dependency.

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EU Proposes Carbon Charges for More International Flights Under ETS Overhaul

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The European Commission has proposed expanding the European Union’s carbon market to cover more international flights arriving in Europe, bringing thousands of routes under emissions trading from 2029 as part of a wider overhaul of the bloc’s Emissions Trading System (ETS).

Under the proposal announced on Friday, flights arriving in Europe from destinations within 5,000 kilometres would be required to pay for their carbon dioxide emissions. Routes such as Frankfurt to Dubai and Frankfurt to Istanbul would fall under the scheme, while longer journeys including Frankfurt to Tokyo would remain outside its scope. Flights arriving from the United States and China would also be exempt.

The proposal keeps existing exemptions for domestic flights serving the EU’s outermost regions, including connections between mainland Spain and the Canary Islands, until the end of 2035.

European officials said the changes are intended to create fairer competition for EU airlines, arguing that some non-EU carriers, particularly those operating through Gulf hubs, currently benefit from an uneven regulatory environment.

Climate Commissioner Wopke Hoekstra said aviation remains the only major sector where emissions continue to increase. He added that extending the ETS would help address competitive concerns while supporting the EU’s climate objectives. Hoekstra also confirmed that private jets departing from and arriving in Europe would be covered under the revised rules.

The Commission is legally required to assess whether international aviation should face broader carbon pricing beyond flights operating within the European Economic Area. The current ETS has covered intra-European flights since 2012, while most international aviation emissions are managed through the International Civil Aviation Organization’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).

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EU officials said that if international efforts fail to deliver sufficient emissions reductions by 2032, Brussels may be required to propose extending the ETS to all departing international flights from Europe, although they acknowledged such a move would be politically challenging.

The revised package also proposes significant changes for industrial companies receiving free carbon allowances. Under the plan, firms would receive 80% of their free allocations after publishing board-approved decarbonisation investment plans, while the remaining 20% would only be released after those investments and emissions reductions have been completed.

Commission officials said the approach is designed to encourage investment in cleaner technologies while maintaining Europe’s industrial competitiveness. They also want at least half of national ETS revenues to be reinvested in sectors covered by the carbon market, including aviation, maritime transport and energy-intensive industries.

The proposal has drawn mixed reactions. German lawmaker Peter Liese called for additional free allowances tied to investments within Europe to protect jobs during the transition. Meanwhile, environmental group Transport & Environment warned against weakening the ETS, arguing that the carbon market has already helped cut emissions substantially since 2005 and remains essential for financing future clean technologies.

The proposal will now move to the European Parliament and EU member states, with negotiations expected to begin after the summer break.

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Iran Claims Strikes on US Bases as Hormuz Tensions Escalate

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Iran’s Revolutionary Guards Corps (IRGC) said early Wednesday it had launched attacks against US military facilities in Bahrain and Kuwait, marking another escalation in the conflict as the United States continued military operations against Iran and renewed restrictions on Iranian shipping in the Strait of Hormuz.

The IRGC said it targeted the US Fifth Fleet’s command-and-control facilities, logistical centres, petroleum installations and military equipment in Bahrain, along with a US base in Kuwait. Iranian state media described the strikes as retaliation for recent American military operations and efforts to control maritime traffic through the Strait of Hormuz.

In a statement carried by local media, the IRGC warned that if Washington continued trying to restrict regional oil and gas exports by controlling key shipping routes, Iran would seek to disrupt other energy corridors serving US and allied interests. The statement declared that regional energy exports would be “for everyone or for no one,” although it did not specify which routes could be targeted.

Missile warning systems were activated in Bahrain and Kuwait as Iranian projectiles approached. Jordanian authorities said their air defence systems intercepted three incoming Iranian missiles, while Kuwait’s military reported repelling Iranian drone attacks. Iran also claimed it had targeted US military facilities at Jordan’s Azraq Air Base for a second time.

US Navy Admiral Brad Cooper, commander of US Central Command, confirmed that Iran had launched dozens of missiles and drones toward neighbouring Gulf countries.

The latest exchange came after the US military carried out a fourth consecutive night of operations against Iranian targets. According to US Central Command, fighter aircraft, drones and naval vessels conducted a seven-hour mission targeting Iranian missile and drone sites, naval assets and coastal defence systems.

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CENTCOM said the strikes were intended to reduce Iran’s ability to threaten commercial shipping and civilian vessels operating in and around the Strait of Hormuz, a waterway that normally handles around one-fifth of the world’s oil and liquefied natural gas trade.

President Donald Trump also renewed warnings that the United States could expand its campaign if diplomatic efforts fail. In a televised interview with Fox News on Tuesday night, Trump said Washington would eventually target Iran’s energy infrastructure unless Tehran agreed to return to negotiations.

“We’re going to knock out all their power plants. We’re gonna knock out their bridges unless they get to the table and negotiate,” Trump said, adding that energy facilities remained potential targets.

The latest hostilities have cast further doubt over a temporary agreement reached in June after the United States lifted an earlier blockade of Iranian shipping to allow negotiations over Tehran’s nuclear programme. Talks have since stalled as military confrontations around the Strait of Hormuz intensified, raising concerns about regional security and the stability of global energy supplies.

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Cuba Suffers Third Nationwide Blackout in Two Weeks as Fuel Shortages Deepen Energy Crisis

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Cuba was plunged into another nationwide power outage on Tuesday after a failure at a generating unit triggered the collapse of the National Electric System (SEN), marking the third island-wide blackout in less than two weeks as the country struggles with worsening fuel shortages and an ongoing economic crisis.

State-owned Electric Union said the outage began around midday after a malfunction at a power plant in the eastern province of Holguín caused a sudden change in grid frequency, forcing the national electricity network offline.

Officials from the Ministry of Energy and Mines said emergency restoration procedures were activated immediately. The process involves creating isolated “micro-islands” of electricity before reconnecting them to rebuild the national grid. Priority has been given to hospitals, food processing facilities and other essential services.

By Tuesday afternoon, electricity had been restored to parts of Havana, with authorities reporting that about 4 percent of the capital had regained power. Provincial officials in Guantánamo, Cienfuegos and Matanzas also confirmed that electricity had returned to hospitals and selected urban areas, including Matanzas’ historic city centre.

The latest outage follows nationwide blackouts last Monday and Friday that left more than 9 million people without electricity. Cuba also experienced two major nationwide outages in March, along with several regional disruptions during the year.

The repeated failures have disrupted daily life across the island. Public transportation has been severely affected, work schedules have been shortened, flights have faced cancellations and hospitals have struggled to maintain normal operations. Residents have also experienced interruptions to cooking, water supplies, internet access and telephone services.

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Fuel shortages have intensified since January, when US President Donald Trump threatened tariffs on countries supplying or selling oil to Cuba. The measures have added pressure to an economy already facing years of financial hardship.

Cuba currently produces only about 40 percent of the fuel it requires, leaving it heavily dependent on imports. Officials have acknowledged that no immediate solution has emerged to secure additional fuel supplies, leaving the country’s ageing electricity infrastructure under continued strain.

Washington’s energy restrictions followed the capture of Venezuela’s then-President Nicolás Maduro and expanded existing sanctions already affecting Cuba’s economy. Authorities say the latest measures have compounded challenges created by previous sanctions and domestic economic reforms, including monetary unification.

The situation has also drawn political attention in the United States. Four Democratic members of Congress who visited Cuba over the weekend described the energy embargo imposed by the Trump administration as turning the island into a “silent Gaza,” highlighting the humanitarian impact of prolonged power shortages.

With fuel supplies remaining scarce and no immediate relief in sight, Cuba’s electricity system continues to face significant pressure, raising concerns that further nationwide outages could occur in the weeks ahead.

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