Electric Vehicles and Europe’s Energy Security: Building Resilience in a Volatile World

By Arne Richters, Head of Public Affairs and Public Relations, Last Mile Solutions

EVs – the cheaper, more resilient choice

The ongoing war in Iran and the broader regional escalation have sent shockwaves through global energy markets, triggering sharp price hikes and volatility for oil and gas. Price per barrel surged past €110 in early 2026, while wholesale gas prices in Europe climbed by more than 40% within weeks.

For a continent still heavily reliant on imported fossil fuels, the result has been immediate: rising costs, higher transport expenses and increased pressure on household budgets.

Naturally, the situation has disproportionately affected petrol-fueled cars – in fact, five times more than electric vehicles (EVs).

Petrol cars are currently looking at a €3.85 / 100km expected premium surcharge, compared to just €0.7 extra for EVs, according toa recent analysis by Transport & Environment (T&E). This means that choosing a petrol car is expected to cost drivers around €140 per month, compared to just €65 for an EV.

This discrepancy shows that EVs are far more resilient to rising energy prices. The reason is structural: electricity prices in Europe are increasingly decoupled from fossil fuels as renewables expand. Meanwhile oil prices remain fully exposed to geopolitical shocks and global supply constraints due to Europe’s reliance on foreign imports.

But EV drivers don’t only benefit from lower prices and lower risks. They also enjoy a wider range of charging options, including home charging, long-term fixed tariffs and even self-generated solar power from rooftop panels. These solutions insulate them further from sudden price swings of fuel and energy in Europe. That’s why switching to EV charging can help protect the European economy and its drivers from the consequences of international conflict.

Strengthening energy independence

In 2024, Europe produced nearly half of its net electricity from renewable sources, reducing the strain on the climate and strengthening the continent’s energy independence. EVs fit right into Europe’s long-term energy sovereignty ambitions.

In 2023 alone, EVs in Europe – including buses and trucks – displaced 66 million barrels of oil. With an average price of €77 per barrel that year, this saved the EU close to €5 billion in avoided imports. With increased electrification, EVs are projected to displace around 2 million barrels per day by 2035, significantly reducing Europe’s exposure to volatile global oil markets.

When the price per barrel of oil reached $120 (€114) during the current crisis, EVs could have been saving up to €228 million per day. To put this number even further in perspective: this sum equals to annual energy bills for ~150,000–200,000 EU households, showing the scale of economic benefits EVs can deliver.

The current energy crisis has also prompted the International Energy Agency (IEA) to release a record 400 million barrels from strategic oil reserves to stabilise global markets. While such measures provide short-term relief, electrification offers a structural, long-term solution by reducing the need for oil altogether.

It is also worth noting that in times of crisis, EVs can provide an additional layer of resilience thanks to their bidirectional charging capabilities. Often referred to as “batteries on wheels”, these vehicles can feed electricity back into homes or the grid. EVs have already been used to power households during peak demand periods or temporary outages, demonstrating how mobility assets can double as distributed energy storage.

Just seven million Battery Electric Vehicles equipped with V2X (vehicle to grid or home) functionality can meet all of Germany’s energy demand for one day. To put this number in perspective, currently there are 49 million passenger cars registered in the EU’s largest member state.

The case for an electric union

Whilst energy prices are not (yet) as high as in 2022 when Russia invaded Ukraine, this latest crisis drives home a familiar realisation: even though Europe has reduced its dependence on Russian oil and gas, it remains heavily reliant on fossil fuels overall. They still account for 68.7% of the total energy mix, of which more than 58% is imported from outside Europe. For oil imports alone, this translated to roughly €270 billion in 2023.

The question, then, is not whether electrification helps – but how Europe can accelerate it. Building a truly integrated “electric union” means scaling up charging infrastructure across borders, ensuring interoperability of payment systems, and investing in smart grids that can handle millions of connected vehicles. It also requires accelerating the rollout of renewable energy, so that EVs are powered increasingly by domestic, clean electricity rather than imported fuels.

To achieve this, Europe could once more turn to the Draghi report and accelerate renewable energy deployment. The key recommendation here is to speed up permitting for renewable projects and remove administrative barriers to building renewable plants. Draghi also pointed out the need for massive investment in electricity grids and infrastructure as they are not ready for increased electrification and supply of renewables. In short: improve EU level coordination and grid planning, build more cross border interconnections, deploy storage and demand flexibility and smart grids.

At the same time, policies can further encourage smart charging and vehicle-to-grid technologies, allowing EVs to stabilise the power system rather than strain it. Fleets – from company cars to urban buses – offer a particularly high-impact opportunity, as they can electrify quickly and operate in predictable patterns that support grid planning.

Europe has a chance to use the current energy crisis to its benefit - and to the benefit of its future generations. Electric vehicles are not just a climate solution, but also an economic and geopolitical one. By shifting transport from oil to electricity now, Europe can cut import bills, shield consumers from price shocks and secure strategic autonomy for the future.

• Why are fuel prices rising so sharply right now?

  The current surge is largely driven by geopolitical instability, particularly the ongoing conflict in Iran. Disruptions to oil supply chains and market uncertainty have pushed global oil prices above €110 per barrel, which directly impacts petrol and diesel costs across Europe.

• Why are electric vehicles (EVs) less affected by these price increases?

  EVs rely on electricity rather than oil. As Europe increasingly generates electricity from renewable sources like wind and solar, electricity prices are becoming less tied to fossil fuel markets. This makes EVs more stable and less exposed to global energy shocks.

• How much cheaper are EVs compared to petrol cars during this crisis?

  According to Transport & Environment, petrol cars are expected to incur about €3.85 extra per 100 km, while EVs face only around €0.7. On a monthly basis, this translates to roughly €140 for petrol drivers versus €65 for EV drivers.

• Are EVs completely immune to energy price fluctuations?

  Not entirely, but they are significantly more resilient. EV drivers can benefit from fixed electricity tariffs, home charging, and even self-generated solar power, which helps reduce exposure to market volatility.

• How do EVs contribute to Europe’s energy independence?

  EVs contribute to Europe’s energy security by reducing the need for imported oil. In 2023 alone, EVs in Europe displaced 66 million barrels of oil, saving billions in import costs. Increasing EV adoption helps the EU rely more on domestically produced energy.