What factors have caused the energy crisis in Europe?
What measures have EU members taken to deal with Europe’s energy crisis?
What was the European Commission’s request to the EU members in the energy field?
What are the provisions of the EU’s plan to deal with Europe’s energy crisis?
The head of the European Commission warned against the possibility of a complete cut-off of Russian gas and said that the EU should adopt emergency plans to deal with this problem. The head of the European Commission said that the EU should make emergency plans to prepare for a complete cut-off of Russian gas.
EU political deadlock with Moscow
European Commission President “Ursula von der Leyen” told EU lawmakers in Strasbourg, France: “Russia is blackmailing us. Russia is using energy as a weapon. Therefore, Europe needs to be ready in any event, whether it’s a partial, major cut-off of Russian gas or a total cut-off of Russian gas.” She said that with the escalation of the political deadlock with Moscow over the Ukraine attack, dozens of union members had been affected by the reduction or complete cessation of gas supply. That is why the Commission is working on a European emergency plan.
EU sanctions against Russia
According to this report, the EU has already imposed sanctions against Russia. EU countries agreed last month that all natural gas reserves in 27 member states should increase by at least 80 percent of capacity for next winter to avoid shortages in the cold season. The new regulation also says that underground gas storage on EU soil must reach 90% before winter 2023. Recently, the head of the International Energy Agency said that Europe should prepare for a complete cut-off of Russian natural gas.
The possibility of a complete stoppage of Russian gas exports to Europe
Fatih Birol, Executive Director of the International Energy Agency, said in an interview with the Financial Times: “Europe should be ready in case Russian gas is completely cut off. The nearer we come to winter, the more we understand Russia’s intentions.” He added: “I believe the cuts are geared towards avoiding Europe filling storage and increasing Russia’s leverage in the winter months.” To deal with the worst-case effects of such a scenario, Birol advised European governments to keep nuclear power plants operational and take other contingency measures.
Russia is the cause of Europe’s energy crisis.
Earlier, Russian President Vladimir Putin said that the sanctions were a double-edged sword and that the European leaders had inflicted a significant blow on their economies by imposing restrictions against Russia. He added that the direct damages to the EU from sanctions could exceed 400 billion dollars in one year, and the citizens of the EU will bear the cost.
The EU’s solution to overcoming Europe’s energy crisis
At the same time, the EU is concerned about stopping the supply of Russian gas and is considering a plan to voluntarily reduce natural gas consumption by 15% in the member countries of this bloc. The EU will publish the project on reducing gas consumption in this bloc member countries soon. Europe is scrambling to fill gas tanks before winter sets in and build up enough reserves to avoid a crisis if Russia cuts supply further in retaliation for EU sanctions over the war in Ukraine. Russia’s state-owned company Gazprom has stopped supplying gas to some EU countries, and European officials have warned that there is a possibility of further supply cuts.
The request of the European Commission to the members of the EU
The European Commission asked the EU member states to prepare for such a scenario by reducing gas consumption. According to the EU’s new plan, the member states’ gas consumption must be voluntarily reduced within the next eight months, and if Europe faces a gas emergency, such a requirement will be mandatory. This proposal must be approved by all EU countries primarily responsible for their energy policies.
Government incentives to overcome Europe’s energy crisis
In the draft of this plan, the measures that governments can implement are mentioned. For example, provide financial incentives for companies to reduce gas consumption, use government aid to encourage industries and power plants to switch to other fuels, launch information campaigns, and encourage consumers to use less heating and cooling systems. Governments must also decide which initiatives should be closed in an emergency.
EU plans against Russian pressure
Gazprom, the Russian state-controlled gas giant, has been pressuring Europeans for months. Big European buyers are severely affected and have to compensate for the gas shortage by expensive purchases in the cash market. The European Commission wants to orchestrate any attempt by Putin to cut supplies again this winter. This response has four pillars: increasing gas storage levels, diversifying energy sources, encouraging demand reduction, and rationing. The most important of them is storage. Last year, many companies refused to buy gas at manipulated Russian prices. The level of the storage reservoirs dropped precariously, but Europe’s mild weather saved it. This year, a plan approved by the European Parliament set a minimum 80% gas fill-up rate by November 1st, rising to 90% in the coming years.
60% of EU tanks are full
EU reservoirs are about 60 percent full, compared to 50 billion cubic meters last year. But not all countries have stored gas equally. Those with 50 percent or less of that reserve today, such as Bulgaria, Romania, and Hungary, will be hit hard, and everyone will suffer if the winter is freezing.
As for alternative energy sources, imports of liquefied natural gas have increased dramatically. Nearly 30 percent of the world’s LNG exports have gone to Europe recently, up from less than 20 percent in 2021. But whether this trend can be sustainable or not is a question.
Conclusion
The EU’s medium-term plan to deal with Europe’s energy crisis is to increase wind, solar and green hydrogen resources to replace Russian gas imports. The following solution is energy rationing. Germany openly talks about this dire prospect, but most countries have avoided it. The European Commission is currently preparing a crisis management framework. There are now programs to help neighbors in emergencies, but not for a program that could be district-wide and take months. According to one proposal, the European Commission will coordinate the reduction of gas demand in all member states. In this regard, different countries have different priorities.
