Decentralized Energy — Europe’s New Energy Reality

LETA 22.05.2026.

The war in Ukraine, the conflict in the Middle East, rising energy prices and growing global trade tensions are pushing the world into a new period of uncertainty, says European Bank for Reconstruction and Development (EBRD) President Odile Renaud-Basso.

In an interview with LETA, she warns that small and open economies — including the Baltic States — are particularly vulnerable under such conditions. According to Renaud-Basso, rising energy prices are already affecting inflation, monetary policy and national budgets.

As the main solutions, the EBRD President highlights:

🟧✓ diversification of energy supply

🟧✓ investments in wind and solar energy

🟧✓ battery storage systems

🟧✓ energy efficiency

For this reason, decentralized energy has been gaining increasing importance across Europe in recent years.

Previously, energy systems were largely based on:

• centralized electricity generation and imports.

However, today’s geopolitical situation increasingly demonstrates:

• the more centralized a system is,

the more vulnerable it becomes to:

🟧✓ price volatility

🟧✓ supply disruptions

🟧✓ infrastructure problems

🟧✓ global conflicts

🟧✓ electricity market instability

That is why decentralized energy is becoming:

• not only an economic issue,

but also a strategic and security issue.

What does decentralized energy mean?

It means:

• electricity is generated, stored and used across many different locations.

Not only in a few large power plants.

Decentralized energy helps to:

🟧✓ reduce dependence on imports

🟧✓ improve energy security

🟧✓ stabilize costs

🟧✓ use local resources more efficiently

🟧✓ reduce grid load

🟧✓ increase energy system flexibility

And particularly in the Nordic/Baltic climate,

• small and medium-sized wind turbines are beginning to play an increasingly important role.

Because during autumn and winter:

🟧✓ average wind speeds increase

🟧✓ electricity consumption rises

🟧✓ heating costs increase

🟧✓ solar energy production often decreases

This is why small and medium-sized wind turbines are becoming increasingly important for:

🟧✓ private houses

🟧✓ farms

🟧✓ businesses

🟧✓ warehouses

🟧✓ industrial facilities

Especially when combined with:

🟧✓ battery storage

🟧✓ Nord Pool optimization

🟧✓ solar panels

🟧✓ infrared heating

🟧✓ EV charging

🟧✓ AWG systems (drinking water generation from air)

In our view, the next stage of decentralized energy development will be:

smart interconnected energy systems.

Where one integrated system combines:

• energy generation

🟧✓ wind turbines

🟧✓ solar panels

🟧✓ energy storage

and energy utilization:

🟧✓ infrared heating

🟧✓ EV charging

🟧✓ AWG systems (atmospheric water generators)

🟧✓ self-consumption

Within this concept, AWG systems are becoming increasingly important,

because:

• they allow drinking water to be produced directly from ambient air humidity.

At the same time, infrared heating fits particularly well into decentralized energy systems,

because:

• the generated electricity can be used directly and with very high efficiency.

Small and medium-sized wind turbines are gradually becoming:

not standalone devices,

• but part of smart decentralized energy systems.

We believe decentralization will become one of the main development directions of Europe’s energy sector in the coming years.

This is especially important for countries near the eastern border of the European Union,

where energy security, infrastructure resilience and decentralized energy are gaining increasing strategic importance.

Recent global events increasingly demonstrate:

energy is no longer just an economic issue.

It is also becoming a matter of:

🟧✓ security

🟧✓ stability

🟧✓ infrastructure resilience

🟧✓ and long-term independence.

Related Articles:

🟧✓ How Wind Helps During the Heating Seasonhttps://www.sundirect.lv/en/post/how-wind-helps-during-the-heating-season

🟧✓ Fixed Pitch vs Pitch Control — Why Blade Angle Control Is Becoming Increasingly Importanthttps://www.sundirect.lv/en/post/fixed-pitch-vs-pitch-control

🟧✓ Installation Nuances — Practical Factors That Determine Wind Turbine Efficiencyhttps://www.sundirect.lv/en/post/installation-nuances-practical-factors-that-determine-wind-turbine-efficiency

🟧✓ Wind Turbines for the Nordic Climatehttps://www.sundirect.lv/en/post/wind-turbines-for-the-nordic-climate

🟧✓ Fixed Pitch vs Pitch Control — Which Wind Turbine System Operates More Efficiently?https://www.sundirect.lv/en/post/fixed-pitch-vs-pitch-control-which-wind-turbine-system-operates-more-efficiently