Von der Leyen also asked to cut all energy dependence on Russia and assured that the bloc is working in this direction and “at the speed of light” is diversifying hydrocarbon suppliers, recalling that so far this year the supply of gas from other countries increased by 31,000 million cubic meters.
At the same time, he insisted that the best way to eliminate this dependency is to accelerate the green transition and promote renewable energies. “Every kilowatt of electricity that Europe generates from solar, wind, hydro, biomass, geothermal or green hydrogen makes us less dependent on Russian gas,” he noted.
The sharp increase in energy is the effect of the veto on imports of Russian hydrocarbons with which the European bloc advanced and the cut in supply ordered by the Kremlin, especially gas, as part of the war of sanctions and counter-sanctions for the invasion of Ukraine, started on February 24 last.
Supply shortages and concerns about the future are driving energy cost hikes in Europe, particularly in Germany and France, where wholesale electricity prices for 2023 broke new records last Friday, with $850 and more than $1,000. per megawatt hour, respectively.
The explosion in prices – which were around 85 dollars per megawatt hour a year ago – is directly linked to the decrease in the shipment of Russian gas, which until before the war represented more than 40% of imports of that fuel in the EU.
Many thermal power plants use gas to generate electricity and as the supply is affected, its price is also at record levels.
Meanwhile, during a press conference in Prague, the head of the German government, Olaf Scholz, spoke today in favor of “swift action” to reform the electricity market.
According to Scholz, there is “complete agreement” among the EU countries on the urgency of taking action.
Shortly beforehand, Czech Industry and Trade Minister Jozef Sikela, whose country holds the rotating EU presidency, announced that the bloc’s energy ministers will meet in an emergency on September 9.
“I call an extraordinary meeting of the Energy Council. We will meet in Brussels on September 9. We have to fix the energy market. The EU level solution is by far the best we have,” he wrote on his Twitter account.
For her part, the Prime Minister of France, Elisabeth Borne, today warned businessmen about the risks of energy rationing this boreal winter, and asked them to reduce consumption.
“If we act collectively, we can overcome the risk of shortages, but unless everyone participates and if all the unfavorable scenarios come together, we could be forced to impose reductions on consumers,” he warned.
“If we end up in a rationing, the companies will be the most affected and, unfortunately, we must be prepared for it,” Borne explained to the executives.
On Sunday, the Austrian Foreign Minister, Karl Nehammer, had made a call to “disconnect the price of electricity from the price of gas” to try to “stop this madness”.
Faced with rising energy costs, EU countries are implementing savings and austerity plans -such as turning off billboards at night- due to the risk of cuts in the boreal winter.
Although the United Kingdom is already outside the European bloc after Brexit, it is also feeling the effects of the war in Ukraine on energy prices. The British energy regulator Ofgem announced this Friday the much-feared and long-awaited increase in the gas and electricity rate cap, which will increase by 80% from October for the calendar year and will seriously jeopardize the finances of many families already hit by the cost of living crisis due to rising inflation.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
