EU energy chief orders increased preparedness ahead of winter
Quick Look
The EU energy chief warned that the EU faces a crisis due to a surge in energy prices in the aftermath of the war with Iran, and urged member states to consider measures to suppress demand, such as temperature limits in public buildings, ahead of winter.
AI-generated summary
Why It Matters
The EU relies on foreign imports for about 80% of its gas needs, and is facing an energy crisis as the Strait of Hormuz is blocked due to the war with Iran.
EU energy chief orders increased preparedness ahead of winter
(Brussels = Yonhap News) Correspondent Hyun Yun-kyung = The European Union (EU) energy chief warned that Europe is facing an energy crisis due to a surge in energy prices due to the aftermath of the war with Iran and urged member states to consider measures to suppress demand.
According to Reuters, EU Energy Commissioner Dan Jorgensen sent a letter to member countries' energy ministers on the 25th (local time), saying, "We are facing a price crisis that is directly linked to a supply crisis," and ordered governments to strengthen preparedness ahead of the winter season.
Commissioner Jorgensen said that the situation in the EU is better than in the winter of 2021 thanks to the expansion of LNG import capacity, the increase in the share of renewable energy, and the decrease in gas demand, but said, "I hope that you will consider continuing gas injection (from storage facilities) for as long as necessary and taking new or maintaining measures to reduce gas and electricity demand." In the winter of 2021, just before the outbreak of the war in Ukraine, Russia significantly reduced supply to Europe, putting pressure on Europe's gas supply.
Commissioner Jorgensen added that measures that could be taken could include limiting indoor temperatures in public buildings, banning outdoor heating and turning off unnecessary public lighting.
The EU, which relies on foreign imports for about 80% of its gas needs, is growing increasingly nervous ahead of the winter season when heating demand surges as energy prices fluctuate due to the blockade of the Strait of Hormuz, through which about 20% of the world's oil and natural gas passes, due to the war with Iran.
European natural gas prices have more than doubled since the outbreak of the Middle East war, exceeding 80 euros per ㎿h this month for the first time in three years. Meanwhile, some countries are having difficulty filling gas storage facilities. According to data from 'Gas Infrastructure Europe', the gas storage rate of the entire EU is about 70%, which is 12 percentage points lower than the same time last year.
What to Watch
AI outlook — possibilities, not facts
Review and introduction of temperature limits and heating bans in public buildings in EU member states
Likely · Within weeks
Open Questions
- What specific demand suppression measures will member states actually adopt?
- Will it be possible to completely resolve the winter gas shortage?
