Europe’s Transition will be “Difficult Years”

August 22, 2022

Bloomberg:

The next “5 to 10 winters will be difficult,” Belgian Prime Minister Alexander De Croo warned on Monday as energy prices in Europe soared to new records.

“The development of the situation is very difficult throughout Europe,” De Croo told reporters. “Some sectors are facing serious difficulties with these high energy prices.”

His comments come as European natural gas prices surged to about 15 times the average summer time price and electricity spiked over the threat of further Russian supply cuts. 

The single biggest risk of the ongoing fallout from the war in Ukraine is the possibility that European solidarity could break down, one Belgian official said, adding such an outcome could undermine energy markets and damage efforts to reach climate neutrality by 2050. 

Benchmark gas futures rose as much as 21%, while German power surged to above 700 euros ($698.21) a megawatt-hour for the first time as the key Nord Stream gas pipeline is set to stop for three days of maintenance on Aug. 31, again raising concerns that the link won’t return to service as planned. 

De Croo said that Belgium can endure the crisis “if we support each other in these difficult times.”

One Response to “Europe’s Transition will be “Difficult Years””

  1. rhymeswithgoalie Says:

    European solidarity could break down, one Belgian official said, adding such an outcome could undermine energy markets and damage efforts to reach climate neutrality by 2050.

    I think Russia’s actions have done more to help Europe sour on oil&gas than any other political scenario, especially since the heat waves would have happened anyway. Countries losing their resolve and kowtowing to Russia to get their oil&gas back is no worse than what they would have done without the Ukraine invasion.


Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: