The recent partnership between a French oil major and a Czech energy group has sparked a debate about Europe's energy future. This deal, creating one of the largest gas power producers in Europe, promises 'flexible' power generation, but critics argue it could lock the continent into a fossil fuel-dependent future.
The Gas Deal: A Double-Edged Sword
The joint venture, named TTEP, aims to address Europe's need for backup power to support renewable energy sources. With a portfolio spanning France, Ireland, Italy, the Netherlands, and the UK, it boasts an impressive 14 gigawatts of power assets, primarily fossil gas-fired. In exchange for a 50% stake, EPH received shares worth billions, becoming a significant shareholder in TotalEnergies.
However, this deal raises concerns. A report by Beyond Fossil Fuels (BFF) warns of increased dependence on imported fossil gas, higher energy bills, and a potential slowdown in Europe's clean energy transition. The venture's focus on combined cycle gas turbine (CCGT) technology, designed for sustained baseload generation, may not align with the rapid response needed for flexible power.
Gas's Role in Europe's Energy Mix
Gas remains crucial in European grid management, especially with the variability of renewable sources like wind and solar. Natural gas consumption for power generation rose in 2025, driven by periods of low renewable output. ENTSO-E emphasizes the importance of flexible generation, but also highlights storage, smarter grid management, and unlocking flexibility from renewables as long-term solutions.
European governments offer 'capacity' subsidies to ensure power supply stability, often benefiting gas and fossil fuel assets. BFF estimates that over €90 billion was allocated to these subsidies between 2014 and 2024, with more than half going to gas and other fossil fuels. The TTEP joint venture is likely to rely heavily on these subsidies, despite questions about the suitability of its portfolio.
The Impact on Europe's Energy Security
BFF argues that this deal deepens Europe's energy insecurity rather than resolving it. By substituting dependence on Russian pipeline gas with globally-traded LNG, Europe remains vulnerable to geopolitical disruptions and price volatility. Rémi Hermant from Reclaim Finance believes this alliance between EPH and TotalEnergies is designed to prolong Europe's dependence on fossil gas, fueling the climate crisis and economic instability.
As Europe seeks a more secure energy future, the banks and investors should take note. Excluding financial support for TTEP and similar ventures developing new gas-fired power plants might be a wise move, ensuring a more sustainable and resilient energy landscape for Europe.
