The world energy crisis is a complex topic. Well known it is the rapid decrease in the world’s limited natural resources, which are taking to renew in thousands of years and are insufficient to meet the demand to power our increasingly industrialized society.
The energy crisis is related to the end of the cycle of oil, gas, and coal, which, in addition, have been producing a considerable increase in greenhouse gases (GHG). Such a phenomenon is outgoing and even becoming worse despite a lot of work to resolve it. Global energy consumption is increasing, and we will face a shortage of fossil fuels in the coming decades.
Eco Green Energy highlighted the primary causes of the current situation regarding the Natural Gas Crisis for better understanding of it.
Dependency Electricity-Gas in Worldwide
The interdependence between gas and electricity security is not going to disappear anytime soon. Gas will remain a key source of electricity, especially in economies with variable seasonal demand, like Europe.
Due to Figure 1, it is possible to emphasize such major trends between 2019 and 2021:
- During the first eight months of 2021, Chinese LNG imports have reached 17 bcm, which is 30% higher than in 2019. The significant gas needs in cold winter and surging demand in the power sector, alongside a lump of ongoing coal to gas switch in other sectors, caused this tendency. Moreover, China increased domestic production and rose pipeline imports, mainly from the Power of Siberia pipeline (ramping up from 0.3 bcm in 2019 to 4.1 bcm in 2020 and 4.6 bcm.
- The increase in gas import was seen in other Asian countries, such as Japan, South Korea, and Taiwan. The demand grew up to almost 9 bcm with the desire of importers to keep the regas tanks topped up in preparation for the coming winter.
- The large rise in LNG demand also demonstrated Central and South America with a 6 bcm, which is a 56% increase compared to previous years.
- The more price-sensitive markets of India, Pakistan, and Bangladesh have also seen small increases, while the Middle East has been flat.
How are the Gas-Crude Interrelationships? The EU Case
Likewise other regions worldwide, the EU needs energy, imported from third countries. In 2019, the leading energy imported products were petroleum products. Other energies that also the EU is buying are gas and solid fossil fuels, 27% and 6% relatively.
According to Eurostat 2019 analysis, Figure 2 indicates that almost 41% of natural gas came from Russia, 16% – from Norway. 8% and 5% came from Algeria and Qatar. Figure 3 demonstrates European countries’ dependence on russian natural gas is quite high, with strong predominance from the Eastern Region. The Czech Republic and Latvia rely totally on russian natural gas, other countries like Hungary and Slovakia supply 95% and 84,5%. Finland, Germany, and Poland still need gas for more than half based on their needs.
Why are natural gas prices rising?
Natural gas prices have been surging in Europe as demand increases globally. While this is happening with most commodities, it’s been a larger problem with natural gas.
As the global economy continues a halting recovery from the COVID-19 pandemic, energy prices and availability threaten to derail it. The pandemic caused a significant drop in energy demand and prices, but recovering demand is now straining fossil fuel markets for oil and gas and even coal. Prices are skyrocketing as demand chases fuel supply that has not yet recovered from the pandemic drop.
- Sanctions due Current Crisis
Russia provides major part of all EU gas, and it could retaliate by restricting supplies. Europe is highly dependent on Russian gas but it will be braced for any possible crisis. A warm winter has left inventories high and there are surging global supplies of liquified natural gas.
Any sanctions that restrict access of Russia to foreign currency can upend commodity markets from oil and gas, to metals and food. Traders are waiting to see what further penalties will bring — particularly any measures related to oil and gas — and whether Russia will be excluded from the the SWIFT international payment system used by banks.
- Decrease of Russian Gas Export to EU
Russia was the largest exporter of natural gas to the European Union in 2019 and 2020, representing more than 40% of EU imports.The International Energy Agency (IEA) said that Russian exports to the EU were down from their 2019 levels and that “Russia could do more to increase gas availability to Europe and ensure storage is filled to adequate levels in preparation for the coming winter heating season”.
How could this impact consumers?
Consumers who do not have a fixed-price contract on heating and electricity are likely to see increases in their energy bills.
Such a trend is possible because natural gas represents a fifth of Europe’s electricity and is used for heating and cooking.
Many countries are trying to help consumers avoid the rising prices: France, for example, proposes a series of measures, including an “energy check” to help people pay their increasing bills. Spain and Italy provide cutting taxes to decrease costs.
But many organizations are concerned that more people may have to choose between paying for heating and feeding their families this winter.
A 2019 EU-wide survey found that 6.9% of people in EU member states could not keep their homes adequately warm.
The natural gas market turmoil has spilled over into European electricity markets, which typically rely on gas as a marginal fuel and are therefore affected when it experiences high prices and volatility.
How can consumers overcome this situation?
There is a solution to deal with the current situation is strongly invest in low-carbon energy technologies such as high efficiency Solar Energy Power. Such measures countries need to impose quickly, or global energy markets will face a turbulent and volatile period ahead. In fact, energy efficiency is a powerful tool for governments, businesses, and consumers to reduce their exposure to fuel market volatility and enhance resilience.
EGE Solar Projects in Europe
For that reason, our PV modules are the best choice to transit to energy security with high efficiency panels (21.40%) and top notch 12BB M12 Half-cell cut technology. Eco Green Energy always contributes efficient solutions by offering excellent quality PV modules. With it, we also promote resolving of gas energy crisis in Europe. Our partners in Europe have already installed more than +50 projects across the region to overcome the current situation.
From Residential-Office applications to Large Industrial Projects, our EGE Panels are making their purpose across the region. Last year, we were glad to implement the solar project with HELIOS Monocrystalline PV panels. 29 Helios 340W half-cut cell modules were applied for Taurus Renovable’s main office roof in Spain with a total capacity of 10kW.
Our partner completed also one more Industrial Installation project in Sharvash, Hungary. The Distributor used 62 panels of a flagship product for the European market HELIOS PLUS 375W for industrial installation. The total capacity reached 23,68 kW, allows supply energy security for manufacturing production lines in Hungary.
Our official distributor in Poland, developed an interesting 39,96 kW application for energy security in installation rooftop. The project consisted in 108pcs of HELIOS PLUS 370W EGE brand panels with high efficiency in Zbrosza Duża.
+7% Output Power – Our Core is Performance
From our clients feedback in Europe, EGE panels has been reported provide a positive power output of +7% power above the indicated in our panels datasheet. It is a key issue why wide range of project developers and distributors in EU region choose our products.
We are proud to be present in the one most developed renewable energy market. Moreover, our company believes, that soon can come up with more successful solar projects with our PV modules of supreme quality.
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- SolarImpulse Foundation, 2021 – How to achieve sustainable energy? https://bit.ly/3rH4JdE
- Home Serve Utility, 2018 – The Impact of Aging Energy Infrastructure https://www.homeserveutility.com/the-impact-of-aging-energy-infrastructure/
- Brookings, 2021 – The emerging global natural gas market and the energy crisis of 2021-2022, https://www.brookings.edu/research/the-emerging-global-natural-gas-market-and-the-energy-crisis-of-2021-2022/
- The Oxford Institutes for Energy Studies, 2021 – Why are gas prices so high, https://www.oxfordenergy.org/wpcms/wp-content/uploads/2021/09/Why-Are-Gas-Prices-So-High.pdf
- Eurostat, 2021 – From where do we import energy? https://ec.europa.eu/eurostat/cache/infographs/energy/bloc-2c.html#carouselControls?lang=en
- Statista, 2014 – Europe is Highly Dependent on Russian Gas, – https://www.statista.com/chart/2485/europe-is-highly-dependent-on-russian-gas/
- Aljazeera, 2022 – Europe’s gas prices soar 62% as crisis puts fuel supply at risk https://www.aljazeera.com/economy/2022/2/24/europes-gas-prices-soar-62-as-crisis-puts-fuel-supply-at-risk
- IEA, 2021 – Statement on recent developments in natural gas and electricity markets https://www.iea.org/news/statement-on-recent-developments-in-natural-gas-and-electricity-markets
- IEA, 2021 – Europe and the world need to draw the right lessons from today’s natural gas crisis https://www.iea.org/commentaries/europe-and-the-world-need-to-draw-the-right-lessons-from-today-s-natural-gas-crisis