The European Commission issued its Strategic Energy Review yesterday, proposing energy efficiency investments, a shift to alternative fuel vehicles to end oil dependence in transport, and more aggressive deployment of renewable energy and carbon capture and storage to “decarbonise” the EU electricity supply. Figuring prominantly among its first six “priorities essential for the EU’s energy security” are the North Sea offshore electric power supergrid that Energywise covered in September and the Mediterranean Ring electric interconnection of Europe and North Africa that I’ve been harping on this week.

The EC energy strategy not only endorses the MedRing, but views it as a component of a future supergrid traversing Europe and stretching beyond the Mediterranean to Iraq, the Middle East and Sub-Saharan Africa.

How would this new vision (and $100/barrel oil) alter the complexion of European energy consumption? The energy review projects that by 2020 total energy demand drops from the equivalent of 1811 metric tons of oil in 2005 to 1672 MTOE in 2020. Demand met by renewables such as wind, solar and hydro more than doubles in real terms from 123 to 274 MTOE, while their share of total demand leaps from 6.8% to 16.4%. Imported renewables – with the MedRing delivering North African wind and solar power – jump 10-fold from 0.8% in 2005 to 8.8% in 2020.

Oil, gas, coal and nuclear, meanwhile, all see a diminished role, both in real terms and as a share of European energy demand. Interestingly the role of natural gas – the low-carbon fossil fuel – drops the most, from 25% to 21%, reflecting EU concern over dependence on gas imports from Russia. Nuclear’s share drops the least, from just slightly over to slightly under 14% of demand; this assumes that nuclear phaseout plans, particularly Germany’s, are followed through.

How to make it all come true? Accompanying the EC review is a ‘green paper‘ (the EU’s unbleached alternative terminology for what we’d call a ‘white paper’) outlining a variety of new regulatory and financial mechanisms. The EU is already a world leader in terms of incentives for lower carbon energy with strong price supports for solar and wind and a carbon cap and trade program up and running (though still lacking teeth as my Energywise colleague Bill Sweet notes). However, the energy review warns that the primarily national-level financing that drives energy projects today are inadequate to drive infrastructure that is pan-European or larger. A perfect example is the massive investment in high-voltage dc lines needed to turn the MedRing into a bulk power mover (see the second half of our feature on MedRing: “Closing the Circuit”).

Even less viable under existing financing mechanisms are those projects that entail considerable “non-commercial risks” such as threats of political instability or terrorism. Did someone say North Africa?

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This post was created for Energywise, IEEE Spectrum’s blog on green power, cars and climate