European Energy Crisis Expected to Last for 2023
The energy crisis in Europe is far from over. A recent report from the IEA stated Europe could face a major natural gas shortage of 27 billion cubic meters this year, nearly 7% of the region's annual consumption, according to CNN Business.
Despite Russia's cut-off of its energy supply to Europe, the energy crisis has been kept at bay thanks to warmer weather. "We have prevented the worst that we were threatened with in summer ... a complete economic meltdown for German and European industry," said German Energy Minister Robert Habeck. The peak of the crisis has subsided, and industries have reduced their uses by seizing energy-intensive production, per AP News.
Another impact of the energy crisis is the possibility of extreme price spikes. But with the government's support by passing gas and electric price caps, this allows businesses and consumers to buy 80% of their energy at the same prices as the prior year.
"My worry is that it's not sustainable," said Agata Loskot-Strachota, senior fellow at the Center for Eastern Studies in Warsaw. "And the other thing is differences between member states regarding the level of state financing that can be granted in longer terms. And these differences may fuel political differences in Europe."