The energy trilemma is currently the biggest challenge facing economies and countries. This was stated during the ESG&FRIENDS 2025 forum by Zsófia Beck, Managing Director and Partner at Boston Consulting Group. The fourth edition of the conference, organized by the first specialized media for promoting ESG in Bulgaria, ESGnews.bg, was held at the Hilton Sofia Hotel.
“The energy trilemma has existed as a concept for several years. Its imposition began with the inception and the development of the war in Ukraine. The three components of the trilemma are: security of supply, sustainability of the process (here we mean the green aspect) and price affordability. Achieving a balance between these three components is a very difficult task and in Europe we have chosen a specific way to solve it. My personal opinion is that perhaps we did not choose the best way.
Before the war in Ukraine, the EU’s focus was largely on sustainability. But after the start of the energy crisis, Europe began to concentrate mainly on security of supply. All financial efforts were thrown there. This is not the most sustainable method, the funds were spent inefficiently. This leads to less competitiveness. We are just starting to return to sustainability. However, things are moving slowly, and we need to act quickly,” said Beck.
The energy transition in the world
Zsófia Beck presented interesting data to the participants of the ESG&FRIENDS 2025 conference. 35% of the countries in the world have set goals for 2050, but only 10% have real and feasible goals. Only 21% of the world’s large companies have goals for reducing emissions. Regarding the very important process for financing the energy transition, Beck pointed out that only 50% of the necessary funds are available. The biggest task is the development of infrastructure.
New US policy
Beck also drew attention to the change in US policy after the start of Donald Trump’s second presidential term:
“The US is returning to the fossil fuel era and moving away from renewables. I do not think this is a positive way of development. The Inflation Reduction Act was used to develop technologies, but this will now change, and not in a positive aspect. We should not ignore the trade war that the US is starting. It will affect the climate and the sustainability of companies.”
How much will the transition cost?
Mario Draghi’s report made it very clear that Europe is losing its competitiveness. This is bad both from an economic point of view and for the environment. Therefore, the energy transition must be accelerated.
“By 2030, Europe must build 750 gigawatts of renewable energy capacity. This will cost 1.6 trillion euros,” Beck said.
Bulgaria – goals and costs
The Managing Director of Boston Consulting Group also paid special attention to Bulgaria.
“The country has made the following commitments by 2030 – a 55% reduction in greenhouse gas emissions, a 12% reduction in primary energy and an 11% reduction in energy consumption. We must say that Bulgaria does not use its energy efficiently. You want the economy to grow with less energy, and this is not easy. Also, by 2030, 42% of the country’s energy mix must come from renewable energy sources, and by 2038 the coal sector must be closed. If I wanted to be politically incorrect, I would say: “Success!”, said Beck.
According to her, in order to achieve these goals by 2030, an investment program of 10 billion euros is needed. The funds should be directed towards building new energy production capacities (4.5 GW of new capacity), decarbonization, transmission networks, and new technologies.
Who is Zsófia Beck?
Zsófia Beck is a Managing Director and Partner at the Boston Consulting Group, a member of the Association of Women in Energy and a board member of Unicef, Hungary. She holds a Master’s degree in Engineering and Management from the Budapest University of Technology and Economics. Before starting her career at Boston Consulting Group, she was a strategic consultant at Accenture.
For the past 15 years, Zsófia has worked with leading international and local energy companies in the Central and Eastern Europe region (CEE), supporting them to achieve their business objectives through strategy development, M&A support, operational improvement, regulatory management and sales strategies.
The forum will be an important platform for all who want to learn more about the opportunities and risks that the energy transition brings. Zsófia Beck’s presence will make this event an even more valuable resource for anyone interested in the future of sustainable energy.
About the Boston Consulting Group (BCG)
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