A newly built dock along the German River in Germany, the US tanker loaded liquefied natural gas into fuel factories and homes. In central Spain, the forest of the wind turbine planted on the mountains helps power to the energy network. In the French government building, thermostat is lowered in winter, saving electricity.
Three years after Russia's invasion of Ukraine ignites the energy crisis throughout Europe, the continent has changed the way it creates power. Russian natural gas, a long European energy lifeline, was replaced by other sources, especially liquefied natural gas from the United States. Wind power and solar power have jumped about 50 % since 2021. A new nuclear power plant is planned throughout the continent.
However, European energy security remains vulnerable. This area produces much less natural gas than consumed, and still depends on other countries, especially the United States, so it maintains lights. Natural gas that promotes electricity prices is almost four times more expensive than the United States. The high -energy costs are nervous, forced the factory, and weaken the European economy.
Depending on Russia
The invasion of Ukraine in 2022 has revealed its dependence on Russia in Europe, especially natural gas. This accounts for about 20 % of European energy consumption.
“Energy seemed cheap, but it was exposed to fear Mail,” said Ursla von del Rayen, the President of the European Commission, the executive department of the European Union, told the World Economic Forum.
In 2022, the price rose sharply, with the worry that Gas flow would completely block Europe and other factors. We united to share fuel and other energy sources, built or changed infrastructure and transported. According to Anna Galtsova, an analyst of S & P Global Commodity Insights, these initiatives are available to 35 % of 2021 to 35 % of Russia's dependence on gas in 2025. It is predicted that it has been reduced to %.
Norway is now the largest gas supplier via a pipeline web. However, Russia became a large -scale supplier of liquefied natural gas, second only in the United States in 2024.
And Europe is better by pointing energy to a needed place, and “it creates a huge amount of flexibility that Europe did not have the night before the war,” said the best in the large American Senniere Energy. Antor Fagin, the commerce officer, said. LNG exporter.
Supporting the pivot was a program that encouraged the household and government buildings to lower the feeding to 19 degrees (Hana 66 degrees). The European factories have also suppressed production to avoid expanded energy bills. Other initiatives were developed, such as the store stopping the light in the evening.
Renewable energy solution
Europe has built more renewable energy projects to fill the gap. Before the invasion of Russia, about one -third of European power generation came from renewable energy promoted by the accumulation of wind power and solar power. According to S & P Global Commodity Insights, in 2024, wind power plants and solar power plants generated more power than fossil fuels.
“It's a big change, which is talking about the promotion of additional policies to get an alternative energy source for the system,” said Tim Gold, Chief Energy Economist in Paris.
However, the transition to renewable energy is expensive. Overall energy prices have fallen since the peak of 2022, but both gas and electric duties remain rising. Renewable sources such as wind and sunlight have made great progress, but it still requires a lot of investment to fill the gap between the low wind and the sun.
Large -scale pollutions like steel makers say that Europe is not enough to promote more environmentally friendly migration. “European policies, energy, and market environments are not moving in an advantageous direction,” ARCELORMITTAL, the largest steel company in Europe, said in November.
Global competition for gas
The biggest alternative to gas piped from Russia was a relatively expensive option, although it was a much liquefied natural gas. Gas, which is essential for industries, heating and power generation, was difficult to leave Russian supplies.
Europe is tossed by the global market and bid for liquefied natural gas for things like China and South Korea. The price has recently risen to the highest level in a year, damaging companies, and increased the crisis of European living expenses.
The largest source of liquefied natural gas is the United States, mainly terminals from the gulf, and provides almost half of European supply. In Europe, there was a boom in the terminal setup to receive LNG in Germany, especially in Germany.
Nater Chahhhhhide, the leader of the European gas pricing of Argus Media, a research company in London, has changed European courses in the cold snap in January. , I was able to make a bigger profit.
“Europe has made a very amazing progress,” said David L. Goldwin, the Ministry of State's energy messengers, between the Clinton and Obama administration. “However, if the LNG weather becomes cold and competition from Asia increases, the situation becomes more difficult.”
The gas price remains high
According to international energy agencies, European natural gas prices have fallen from the high prices of 2022, but in 2024 it doubled the average five years after the war.
Although the import of Russian gases via European pipeline has plunged, Europe has expanded the purchase of liquefied natural gas from Russia arriving from the port. There was not enough time to develop new resources like LNG to make up for Russian gas losses.
The decline and flow of LNG is determined by the power of the market. Trump has urged Europe to import more fuel from the United States, suggesting that LNG from the United States can be replaced by Russian fuel.
Analysts say Russian V. Putin can include some additional gas exports from Russia to Europe to agree to Ukrainian Ukraine's reconciliation. “It's a serious negative for US energy exporters,” said Goldwin.
Cost of energy crisis
The exorbitant gas costs contributed to the soaring soaring, hired thousands of people in Europe, and led factories that have been closed or relocated in cheaper countries.
Some of the largest names in Europe trim. German chemical college BASF is the biggest in China's history, with two -thirds cheaper energy than Europeans, while closing some productions on the site of Routovighafen near the border of France. He said he was investing in foreign countries.
High natural gas prices have been converted to higher costs for making ammonia, an important component of fertilizer. YARA International, a fertilizer -based fertilizer -based fertilizer, may stop ammonia production at a factory in Tertre, Belgium, leading to over 100 unemployment. “High energy prices are a major issue for European competitiveness,” said a spokeswoman.
The energy crisis also brought a painful life crisis for European families. Energy poverty has been jumping in Europe, reporting that nearly 10 % of the population cannot keep the house warmly, and more households are delayed to pay for energy.
“We have created the instability of energy,” said Niki Vosa, a spokeswoman for the French National Rural Family Federation. “People are reducing the heating of the house and reducing gasoline tanks.”
Difficult battle
In recent months, we have a new sign of market anxiety. The cold weather can lead to an expensive Europe to reduce the level of storage accumulated for winter at a faster speed than last year, and to rebuild these shares during the summer.
“This summer is a summer for replenishing the reserves before the next winter,” said Fielding of Argus.
Despite recent premium prices, European overall gas production has decreased. In the Netherlands, higher taxes prevented investment in the North Sea in the UK, while production caused the earthquake and while the once -cropped Gloningen fields were closed. According to S & P Global Commodity Insights, the European Union and the UK's domestic production reached less than 20 % of consumption in 2024.
Austrian OMV is one of the rare companies aimed at increasing European gas production. Alfred Stern, the highest executive officer of OMV, competing in European energy costs with other regions like the United States is “increasing gas supply.”
“We are a past peak crisis,” said Michael Stoppard, the lead of S & P Global Commodity Insights. “But we are not out of the forest.”
