Energy Transition

The global energy transition is one of the greatest challenges and opportunities of our time. As climate change accelerates and energy demands rise, the world must find pathways to clean, affordable, and scalable energy solutions. A decisive factor for success will be international cooperation – especially between Europe and China. Only together can we unlock the full potential of the transformation ahead.

Herbert Diess, former CEO of Volkswagen, recently underlined an important truth: competing on price in the energy sector makes little sense for Europe. Instead, the continent should focus on its strengths – innovation, quality, regulatory frameworks, and advanced technologies. When it comes to large-scale deployment and cost reduction, however, we must rely on strong partners. China, with its ability to industrialize renewable technologies at an unmatched pace and scale, is an indispensable ally in this journey.

Today, renewable energy can already be generated for as little as 1 cent per kilowatt-hour in some regions. This is no longer a vision – it is reality. If we want to power our homes, industries, and electric vehicles at such rates, we must embrace cooperation. The mass market, with price targets below 5 cents per kilowatt-hour, is not a threat to Europe’s industrial base – it is a necessary condition for decarbonization at scale.

Germany, in particular, must rethink its approach. While the country has been a pioneer in renewable energy development, it risks falling behind due to regulatory inertia and fragmented implementation. Decades-long debates over the Messstellenbetriebsgesetz, the failure to deliver smart metering, the repeated grid charges for battery storage, and a persistent focus on gas infrastructure show a lack of urgency. Instead of looking inward, we must look beyond our borders – and most notably, towards China.

This is not about giving up technological sovereignty. On the contrary: it is about combining strengths. Europe’s research and development capabilities, environmental standards, and system integration expertise, paired with China’s scale, speed, and manufacturing efficiency, offer a blueprint for success. Together, we can drive down costs, accelerate deployment, and shape the global energy architecture.

The future of the energy transition will not be decided in isolation. It will be shaped by those who dare to collaborate, to learn from each other, and to build bridges instead of walls. Europe and China must lead this effort – not as competitors, but as partners in a shared mission for a sustainable, affordable, and secure energy future.