The European Union has made the energy transition one of the defining projects of our time. Through the European Green Deal and the implementation of the UN 2030 Agenda for Sustainable Development, Europe aims to achieve climate neutrality while accelerating the deployment of renewable energy sources. Yet recent events have revealed a critical question that policymakers can no longer ignore: can the energy transition be considered successful if electricity becomes unaffordable for millions of citizens?
The energy crisis that followed the Russian invasion of Ukraine and the Strait of Hormuz situation transformed what had often been a technical debate into a social and political issue. Across Europe, households and businesses faced unprecedented increases in electricity bills. Suddenly, energy was no longer discussed only in terms of decarbonisation targets or renewable technologies. Instead, attention shifted to a more fundamental concern: access to affordable electricity.
This experience has reinforced an idea that legal scholars and policymakers are increasingly embracing: the energy transition must not only be green; it must also be just.
For decades, European energy policy has largely been built around the logic of market liberalisation. Competition, market integration, and efficiency were expected to deliver better outcomes for consumers and to promote innovation. These objectives remain important. However, the recent crisis exposed the limitations of viewing electricity simply as another commodity traded in a market.
Electricity Beyond the Market
Electricity occupies a unique position in contemporary society. Without it, individuals cannot adequately heat or cool their homes, access digital services, work remotely, study online, or participate fully in economic and social life. Electricity is increasingly indispensable for the exercise of fundamental rights and for maintaining acceptable living standards.
Rather than being viewed exclusively as an economic asset, electricity should be understood as a resource that performs essential social functions. Its value cannot be measured solely through market prices, because access to electricity directly affects human dignity, social inclusion, and the realisation of fundamental rights. This perspective becomes particularly important when discussing sustainability. A sustainable energy system is not only one that reduces emissions; it is also one that guarantees that people can actually access and benefit from energy services.
Much of the public discussion surrounding climate policies focuses on technological innovation. Solar panels, wind farms, battery storage, hydrogen infrastructure, and smart grids are often presented as the pillars of the future energy system. While these developments are undoubtedly essential, technology alone cannot guarantee a successful transition.
The real challenge is distributive. Who bears the costs of decarbonisation? Who benefits from new investments? And who risks being left behind? This is where the concept of energy justice becomes crucial. Energy justice reminds us that climate policies have social consequences: measures designed to reduce emissions may also affect employment, household budgets, regional economies, and access to essential services. The goal is therefore not merely to achieve decarbonisation, but to ensure that the benefits and burdens of the transition are shared fairly.
The European Union has increasingly recognised this challenge. The concept of a “just transition” now occupies a central place within the European Green Deal. The idea is simple but powerful: climate action and social cohesion must advance together.
Energy Poverty and the Just Transition
Perhaps no issue better illustrates the importance of energy justice than electricity pricing. One of the most controversial aspects of the European energy market concerns the mechanism through which electricity prices are determined. Under the so-called merit-order system, the market price is generally established by the most expensive source of electricity needed to satisfy demand. In theory, this approach promotes efficiency; in practice, however, the energy crisis demonstrated its weaknesses.
As natural gas prices increased dramatically, electricity prices followed, even in countries where a significant share of electricity was produced from renewable sources whose production costs had not increased to the same extent. For many consumers, the result was difficult to understand: how could electricity generated by relatively inexpensive renewable technologies suddenly become so expensive?
This question is not merely economic. It is also legal and political, because it concerns the relationship between markets and public interests. In my opinion, a pricing system designed for fossil-fuel-based electricity markets may not be fully suited to an energy system increasingly dominated by renewable generation. The risk is that consumers fail to enjoy the economic advantages associated with renewable energy deployment, while public support for climate policies gradually erodes. If citizens perceive the energy transition as a source of higher costs rather than collective benefits, the legitimacy of climate policies may be undermined.
The debate on electricity prices is closely connected to another growing concern: energy poverty. Millions of Europeans struggle to adequately heat their homes, pay electricity bills, or access basic energy services, and rising prices have made this problem even more visible.
Energy poverty is often treated as a social policy issue separate from energy regulation. This distinction is increasingly difficult to sustain. Access to affordable electricity affects health, education, employment opportunities, and social participation. In an increasingly digital society, energy poverty can also translate into digital exclusion: without affordable electricity, access to online education, remote work, public services, and digital communication becomes significantly more difficult. For this reason, affordability should be considered a core objective of energy policy rather than a secondary concern addressed only through emergency measures.
Energy Communities as a Possible Response
One of the most promising developments in European energy law has been the emergence of energy communities. Recent EU legislation allows citizens, local authorities, and civil society organisations to participate directly in the production, storage, consumption, and sharing of renewable energy. This development represents much more than a technical innovation: it reflects a broader transformation in the way energy is governed, as I have explored elsewhere in relation to the barriers and drivers of energy prosumerism across Europe.
Energy communities allow citizens to become active participants rather than passive consumers. They can reduce energy costs, increase local resilience, and strengthen social cohesion. They also embody many of the principles associated with energy justice, including participation, empowerment, and local benefit-sharing. Perhaps most importantly, they demonstrate that alternative models of energy governance are possible. Markets remain important, but they are not the only mechanism through which energy systems can be organised.
The European Union has already taken important steps to address the social dimension of the energy transition. Recent electricity market reforms, stronger consumer protection measures, and support for renewable energy communities all point in the right direction. Yet the broader challenge remains.
Conclusion
The success of the transition will not ultimately be measured by the number of solar panels installed or the volume of emissions reduced. It will also depend on whether ordinary citizens perceive the transition as fair.
A climate-neutral Europe cannot be built on energy insecurity. Nor can sustainability be achieved if significant parts of society are excluded from access to affordable electricity. The lesson of the recent energy crisis is therefore clear: electricity is not simply a commodity traded in markets. It is a prerequisite for modern life, social participation, and human dignity.
If Europe wants the energy transition to succeed politically as well as environmentally, affordability must move from the margins of the debate to its very centre. Because a transition that is not affordable will never be fully sustainable. And a transition that is not just will never be truly green.
This blog post draws upon the author’s previous scholarly work, L. Ruggeri, The Legal Status of Electricity Through the Lens of Sustainability, in C. Alvisi and F. Quarta (eds.), Energy Revolution and Third-Millennium Mobility between Market Dynamics and Social Impact, Bologna University Press, 2026.
(Photo: Sophia Sideri)
