Europe imports roughly half of the energy it consumes, primarily oil and natural gas. Volatility in energy prices and supply chains has now persisted for years.

What began with the war in Ukraine and the ban on Russian gas triggered a search for a new equilibrium capable of replacing Moscow’s hydrocarbons — a mission that seemed largely accomplished until the latest Middle Eastern crisis, sparked by the conflict involving the United States, Israel, and Iran.

The resulting instability has forced governments to revise growth forecasts downward for 2026 — Germany, for instance, halved its projections. Above all, however, it has placed growing pressure on citizens, already burdened by soaring fuel and electricity prices.

As if that were not enough, artificial intelligence and data centers — widely seen as critical to future economic competitiveness — are extremely energy-and resource-intensive. Enough, perhaps, to challenge long-standing taboos.

Nuclear power makes a comeback

It is hardly surprising, then, that nuclear energy is returning to the center of the debate.

After being phased out by many countries over recent decades, repeated energy crises have produced what once seemed unthinkable: a growing number of governments are reversing course on nuclear power, or preparing to do so.

Sweden has lifted its ban on uranium mining — a resource the country possesses in abundance — in anticipation of expanding nuclear energy production. Belgium, Italy, and Greece, each in different ways, are reconsidering their positions. Italy, notably, has continued nuclear research through ENEA’s advanced laboratories despite abandoning nuclear power generation decades ago.

France, meanwhile, already generates around 65% of its electricity from nuclear power and has no intention of dismantling its atomic infrastructure.
 

The rise of renewables

Renewable energy remains the other major pillar in the fight against high energy costs, especially as production costs have fallen significantly over time.

In 2025, renewables accounted for 42% of all electricity generated in Europe. For perspective, the figure stood at 29% in 2015 and just 18% in 2005.

The pace of growth is therefore significant. Countries such as Spain are leading the way in wind and solar deployment, while Italy also holds strong potential, particularly in its southern regions, rich in both sunshine and wind resources.

A few figures help illustrate the Italian case: wind power (8.2%) and solar photovoltaics (13.3%) together generated 21.5% of Italy’s renewable electricity production in 2024, according to data from Terna. Twenty years earlier, in 2005, both sources were virtually nonexistent.

There is still considerable room for growth — especially if policymakers manage to strike a balance between environmental priorities and landscape preservation concerns.

Hydropower, meanwhile, remains highly significant, accounting for 20.2% of total electricity generation in 2024, though production levels have remained relatively stable for decades. Concentrated almost entirely in northern Italy, hydropower has little room for further expansion, as nearly all viable basins have already been exploited through infrastructure projects dating back to the early twentieth century.

Italy’s energy geography also reveals strong regional specialization: Trentino-Alto Adige and Valle d’Aosta generate most of their electricity from hydropower; Apulia and Sicily are heavily focused on wind energy; while solar power plays a particularly important role in the Marche region.

The limits of renewables

The global expansion of renewable energy is undoubtedly necessary to contain global warming and meet the targets established under the Paris Agreement signed in 2015. On that occasion, countries committed to keeping global temperature increases well below 2°C above pre-industrial levels by 2100 — and ideally within 1.5°C.

The problem is that, at the time of writing, global temperatures have already risen by approximately 1.4°C, dramatically narrowing the margin for action in the coming years.

And that is only one of the challenges facing policymakers.

The rapid expansion of green energy is running into a major bottleneck: the outdated condition of Europe’s electricity grids.

Renewables are, by definition, intermittent and non-dispatchable energy sources. Sudden production peaks alternate with periods in which output falls below demand. Excess production must be managed carefully to avoid overloading the grid — sometimes through unconventional mechanisms such as negative electricity prices, with some even proposing cryptocurrency mining as a stabilizing tool. At other times, insufficient generation risks penalizing consumers.

In both cases, the solution depends on building large-scale storage systems capable of storing energy and releasing it when needed.

Nuclear power’s unresolved issues

Nuclear energy, however, comes with its own set of challenges.

First, a distinction must be made between countries that already operate nuclear plants and those that do not. For the former, the main issue is maintenance — namely the costs required to keep reactors operational and safe.

For countries without existing infrastructure, the situation is far more complex. Governments are discouraged by the enormous upfront investments required and by the long construction timelines associated with nuclear facilities.

Projects can take up to a decade to complete and are often subject to significant delays. One notable example is Flamanville 3 in Normandy, northern France: construction began in 2007, and the reactor was originally expected to enter operation in 2013. In reality, it was only connected to the grid in 2024, and even then had not yet reached full operating capacity.

Waste and strategic dependence

There is also the issue of nuclear waste, an area in which the European Union still lacks a common strategy.

Supply chains represent another critical concern. Uranium remains a raw material that must be sourced on international markets dominated by Australia — home to the world’s largest reserves — and Kazakhstan. Canada and Russia follow at some distance. None of these countries are EU members.

From a strategic standpoint, nuclear energy therefore risks creating yet another form of external dependency.

Finally, an excessive focus on nuclear power could undermine momentum behind renewables, which remain the true long-term investment — at least until nuclear fusion becomes a viable option, something that still appears far from reality.

Hard calls

So what is the right path forward?

For governments, there is no simple answer. Energy policy depends on a complex interplay of geographical, economic, diplomatic, and domestic political factors.

For now, many countries — including Italy and Germany — continue to rely on natural gas as a buffer solution. Yet this choice requires long-term infrastructure investments and supply agreements that risk slowing the global energy transition.

Finding the right balance is anything but straightforward.

And those hoping that technological breakthroughs — particularly nuclear fusion — will provide an immediate solution may be disappointed, at least in the short term.

Until a genuine breakthrough appears on the horizon, and with energy demand continuing to rise, the most effective strategy may be to keep consumption under control by improving efficiency across industrial processes, residential buildings, and the broader economy.

Changing citizens’ habits could help as well, but that remains both politically difficult and socially challenging to implement.