Since the original discussion the EU has been progressing on the way to more green energy. There have been three major reasons for doing this. The first is geopolitical. Russia has served us badly, and we do not want to be blackmailed again, so we want to become independent with energy. The second is concerns about climate change, and the third is cost. Wind and solar have become cheaper than fossil fuel, so to be competitive in the global economy, and for our populations to prosper, cheap energy matters.
The trajectory has been along two important lines. The first has been energy conservation. If you use less energy there is less to transition from. It has been a mix of regulations to make energy use more transparent, such as labelling of appliances for energy consumption, or mandatory labelling of houses for rent or when they are sold. This is classic economics if you want a market to function smoothly and fairly. Another route has been mandatory standards of energy conservation for new houses. Such standards dramatically increase the market for energy saving solutions like triple glazing, heat pumps and the like. The result has been that such things have quickly become rather cheaper because they are now common rather than rare. A second trajectory has been subsidies, to accelerate the process. In the Netherlands home owners have been offered about 25% subsidies for home insulation, and that has clearly stimulated the transition. The biggest issues have been that there has been a shortage of skilled labour on the one hand, and a lack of convenient procedures for rental property, which obviously disadvantages mostly poorer people.
The second line has been to generate more durable energy, and wind and solar in particular. This is moving along at pace, and is mostly held back by a lack of skilled labour, and in particular by the limited capacity of the grid. This is rapidly being expanded, but it is a truly major challenge. Here again, beefing up the grid rapidly is impossible without govenrment intervention. Public action is also required to set standards for smart appliances that modulate their electricity consumption in response to dynamic prices, such as smart charging poles for EVs, smarter heat pumps or dishwashers, washing machines and the like.
In the meantime, it is all coming together. We had our large house insulated to a much higher standard than before, already had solar panels, and now also have a heat pump for heating and tap water. The natural gas connection was removed to save on the connection charge. Our net electricity consumption is now about 5000 kWh for a whole year, and at a cost of about 1500 euros a year (for a large detached house). We still have a gasoline car, but when that dies it will be replaced by an EV that we can charge cheaply when our solar panels have excess production. In our case the transition was motivated by a combination of a sense of ecological responsibility, hard nosed economics in response to prices, and govenrment incentives. And that, of course, is how those transitions mostly happen.