How Europe’s Energy Crisis May Impede Its Green Goals: QuickTake

摘要

Europe’s energy ambitions are clear: to shift to a low-carbon future by remaking its power generating and distribution systems. But the present situation is an expensive mess. A globalsupply crunch for natural gas, bottlenecks for renewable energy and wind speeds in the North Sea earlier in 2021 among the slowest in 20 years, idling turbines, have contributed tosoaring prices for everything from electricity to coal. Governments are preparing to intervene if needed in volatile energy markets to keep homes warm and factories running.Energy prices skyrocketed as economies emerge from the pandemic -- boosting demand just as supplies are falling short. Coal plants have been shuttered, gas stockpiles are lower thannormal and the continent’s increasing reliance on renewable sources of energy is becoming a vulnerability. Even with mild weather, benchmark gas prices traded as high as 162 euros permegawatt-hour on Oct. 6, early in the heating season for the European energy markets. That compares with about 20 euros at the start of the year. Italy’s ecological transition minister,Roberto Cingolani, said he expected power prices to increase by 40% in the third quarter. In the U.K., CF Industries Holdings Inc., a major fertilizer producer, briefly shut two plants beforereceiving government aid to restart carbon dioxide output, and Norwegian ammonia manufacturer Yara International ASA curbed its European production because of high fuel costs.Mining company Boliden AB says the record prices will boost costs for the industry for years to come.