Imported energy, the contradictions of the green transition and the accumulation of depreciation
Depreciation that never goes away
At a time when public debate extends as far as the economics of indoor lighting, certain far more fundamental economic issues often remain out of the spotlight. Perhaps this is because addressing them requires greater political courage than current events usually allow.
The most worrying aspect of European energy policy is not the inaccuracy of forecasts, but the systematic underestimation of economic constraints. The cost of capital, competitiveness and an ageing population have long been treated as secondary considerations. Yet they form the very foundations upon which the sustainability of any energy transition is judged.
The basic premise of the green transition was that replacing fossil fuels with renewable sources would lead to cheaper energy. In practice, however, the costs were not eliminated but multiplied. Europe was not merely called upon to finance a new energy system. It was simultaneously obliged to continue absorbing the costs of the old one. The investments made over the last two or three decades do not simply vanish because new technologies are being adopted. Power stations, pipelines and grids continue to weigh heavily on the balance sheets of businesses and governments. Their depreciation costs continue to be incurred, even though they are rarely mentioned in public debate.
Rather than the conventional system being completely replaced, a second system has been added on top of it. Wind turbines, solar farms, interconnectors, grids, substations, storage systems and back-up units require huge investments, whilst at the same time a large part of the conventional infrastructure remains essential for security of supply. The energy system has not been simplified. It has become more expensive, more complex and more capital-intensive.
Naftemporiki / Opinions, Thursday, October 1, 2026