The costs and consequences of Europe’s energy crisis are growing
Despite appearances, the worst is yet to come
Just five panicked months ago, with flows of natural gas from Russia plummeting and rationing and economic devastation looming, the European Union approved an edict ordering members to ensure that their gas-storage facilities were at least 80% full by November 1st. In the end, they easily beat the target. Storage is currently 95% full, with more gas waiting to be unloaded from a fleet of tankers idling off Europe’s coasts.
That is not the only indication that Europe is in for a less bitter winter than seemed possible only a few months ago. Natural gas to be delivered in the first quarter of next year is selling for about €125 ($130) per megawatt-hour (MWh), down from over €300 during the summer. Wholesale power prices in Germany, Europe’s biggest economy, have plunged from a peak of more than €800/MWh in August to less than €200 this week.
This article appeared in the Briefing section of the print edition under the headline "Chilling prospects"
From the November 26th 2022 edition
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