Energy Security Is Economic Power: Why Manufacturing’s Future Depends on It
At the Future Investment Initiative (FII), I had the opportunity to lead a discussion on one of the most consequential issues facing the global economy today: the intersection of energy security, competitiveness, and the future of manufacturing.
The conclusion is straightforward—but too often ignored.
To compete in the digital era and lead the next generation of industry, a country needs one thing above all else: reliable, affordable energy.
Yet this fundamental truth is frequently overlooked in policy debates. Energy security is not a secondary consideration or a subset of climate policy—it is the primary responsibility of government. It is the foundation upon which economic strength, industrial capacity, and national competitiveness are built.
Across Europe, the consequences of losing sight of this principle are becoming increasingly visible.
Countries such as Italy are burdened with some of the highest energy costs in the world. This creates a structural disadvantage that impacts everything from manufacturing output to foreign investment. While renewable energy plays a critical role in the future energy mix, it is inherently intermittent. A modern industrial economy—one that operates 24 hours a day, seven days a week—cannot rely on intermittency alone. Baseload reliability is essential.
Today, that reliability is delivered by natural gas.
Germany’s recent economic slowdown offers a clear and cautionary example. The primary driver is not labor cost or productivity—it is the cost of energy. When energy becomes uncompetitive, industry follows.
This leads to a fundamental question: how can any country sustain and grow a manufacturing base without access to low-cost, reliable energy?
The answer is simple. It cannot.
Energy security is economic power.
Lowering the cost of energy unlocks extraordinary value across the entire industrial ecosystem. The economic prize is immense—on the order of $1 trillion when considering the cumulative impact on manufacturing, supply chains, and national competitiveness.
Achieving this requires a renewed focus on strategic infrastructure.
Projects such as Porto Empedocle are not optional—they are essential. Developing approximately 24 MTPA of LNG storage and regasification capacity would significantly strengthen Italy’s energy resilience, reduce price volatility, and restore competitiveness to its industrial base.
However, there remains a critical gap. Today, there are insufficient incentives to invest at the scale required to ensure true energy security. This misalignment between policy ambition and investment reality must be addressed.
Because ultimately, success in manufacturing does not begin with process innovation or digital transformation.
It begins—and ends—with the cost of energy.