Business & Economy 0

25.06.2024.

13:21

The EU is Not Ready for the Gas Crisis

The European Union is not sufficiently prepared to face the upcoming gas crisis despite having introduced several measures to stop dependence on Russian energy sources, the European Court of Auditors (ECA) announced.

Izvor: Tanjug

The EU is Not Ready for the Gas Crisis
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The report states that Europe has managed to avoid major gas shortages during the crisis, but it is unclear how much of this can be attributed to the decisions of the European Union compared to other factors, such as a mild winter and high prices that caused the industry to use less gas. Reuters reported.

Europe's energy supply became problematic in 2022 when the largest supplier of gas, Russia, started a war in Ukraine and cut fuel supplies, prompting the European Union to urgently introduce a common policy when it comes to filling gas storage, as well as reducing use and joint purchases. that energy source.

Coordination between Brussels and EU members helped create new gas supply routes to avoid shortages, and the obligation of bloc countries to fill 90 percent of gas storage before winter created market stability, according to the auditor's report.

However, they said these activities did not sufficiently address the issue of gas affordability, the price of which has risen to more than 300 euros per megawatt hour in August 2022, from around 50 euros per megawatt hour a year earlier.

"The commission knew back in 2014 that the cessation of Russian gas supplies would have a huge impact on prices, but it never addressed the impact of its effects on consumers or industry," said one of the auditors, Joao Leao.

The auditors cited other shortcomings in Europe's preparations for a supply crisis, noting that six EU countries have retained the option to cut gas supplies to their neighbors in an emergency.

They declined to comment on how the planned end this year of an agreement on the transit of Russian gas to Europe via Ukraine would affect Europe's energy security but noted that the EU's overall reliance on Russia has fallen from 45 percent of total gas supplies in 2021 to about 15 percent last year. years.

European gas demand is expected to decrease as countries cut back on fossil fuel consumption to meet climate agenda targets.

The auditors said that the European Union is far behind when it comes to plans to build infrastructure to reduce harmful emissions resulting from the continuous burning of gas.

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