Gas Price Increase in Europe Followed by Electricity

According to BBC, Russian natural gas supplies in European countries have dropped significantly in recent weeks. As a result, gas prices have risen, affecting the food and other industries in the European countries.

Also, this fact was followed by the rise in the electricity price. The government is trying to help consumers. The crisis has once again revealed the difficulties associated with switching to renewable energy sources.

In Spain, the price of electricity has risen by 35% in the last few months, only in the last month, its price has risen by 8%. The price of electricity is closely related to the general price of gas. It has reached historic value several times recently.

If before the family had to pay 40 euros per month for electricity, nowadays the price has risen to 60 euros.

The change in the price of gas in Italy is particularly sharp. 40% of its energy comes from natural gas, half of which comes from Russia. The Italian government has spent 1.2 billion euros to keep gas from becoming more expensive for consumers and plans to spend another 3 billion euros. “System taxes” will be removed from gas and electricity tariffs for the next three months. This tax was added to the basic tariff for switching to renewable energy sources.

Consequently, discussion about energy diversification is becoming more frequent in Italy, with the country planning to switch from gas-dependent to green energy sources. Experts suggest that switching to renewable energy sources in European countries is inevitable and will lead to rising prices. Alongside the increase in gas prices, the EU is implementing a program to reduce CO2 emissions into the atmosphere, as well as a program to reduce dependence on nuclear energy in European countries.

In Poland, the price of natural gas has tripled this year, and eventually, it has risen by 20%. In addition, Poland produces its gas, which provides 50% of the gas consumed in the country, and the price of gas is regulated by the state.

Most of Poland’s energy system is still dependent on coal. The gas issue in Poland is both economic and political. The government plans to relinquish its long-term dependence on Russian gas next year and replace it with American and Norwegian gas so that it no longer falls victim to Gazprom’s monopoly and political manipulation.

Norway, where 92.9% of electricity is generated by hydropower plants, is the largest producer of oil and gas in Europe. It sells fuel mainly for export. Next year, Norwegian energy company Equinor will increase gas exports to 2 billion cubic meters to meet the growing demands of the EU and the UK. Despite all this, the increase in gas and electricity prices is possible there as well.

From October 1, Norway will be able to export electricity via submarine cable to the UK. The two non-EU countries will create a single energy system.