The Prague Post - Heat will stay on in Europe this winter, but after?

EUR -
AED 4.317798
AFN 77.77342
ALL 96.491874
AMD 448.694716
ANG 2.104995
AOA 1078.126398
ARS 1690.956864
AUD 1.772517
AWG 2.119218
AZN 2.002685
BAM 1.956649
BBD 2.367327
BDT 143.642335
BGN 1.957187
BHD 0.443232
BIF 3472.091988
BMD 1.17571
BND 1.515351
BOB 8.151537
BRL 6.366
BSD 1.17541
BTN 106.61687
BWP 15.523737
BYN 3.437392
BYR 23043.92017
BZD 2.363926
CAD 1.619006
CDF 2645.348639
CHF 0.935207
CLF 0.027402
CLP 1074.986795
CNY 8.285524
CNH 8.275336
COP 4488.861592
CRC 587.95515
CUC 1.17571
CUP 31.156321
CVE 110.312872
CZK 24.333667
DJF 209.310833
DKK 7.469622
DOP 74.662401
DZD 152.428443
EGP 55.767585
ERN 17.635653
ETB 182.940289
FJD 2.709131
FKP 0.87872
GBP 0.879237
GEL 3.168582
GGP 0.87872
GHS 13.516866
GIP 0.87872
GMD 86.422158
GNF 10221.39222
GTQ 9.003907
GYD 245.906714
HKD 9.147331
HNL 30.960436
HRK 7.534657
HTG 154.006178
HUF 384.569525
IDR 19621.780454
ILS 3.77738
IMP 0.87872
INR 106.852365
IQD 1539.774751
IRR 49509.157386
ISK 148.198279
JEP 0.87872
JMD 187.841516
JOD 0.833609
JPY 181.897073
KES 151.565774
KGS 102.815855
KHR 4703.020928
KMF 493.798919
KPW 1058.139486
KRW 1730.140146
KWD 0.360638
KYD 0.979529
KZT 606.245665
LAK 25470.053018
LBP 105275.541947
LKR 363.437718
LRD 207.486513
LSL 19.720958
LTL 3.471567
LVL 0.711175
LYD 6.371765
MAD 10.788882
MDL 19.84061
MGA 5239.273642
MKD 61.559672
MMK 2468.716375
MNT 4170.058344
MOP 9.422329
MRU 46.75629
MUR 54.024021
MVR 18.104636
MWK 2038.184493
MXN 21.146618
MYR 4.805173
MZN 75.130468
NAD 19.721042
NGN 1706.17897
NIO 43.258589
NOK 11.944434
NPR 170.565019
NZD 2.037112
OMR 0.452051
PAB 1.17541
PEN 3.958135
PGK 4.995146
PHP 69.204069
PKR 329.405149
PLN 4.218742
PYG 7894.425876
QAR 4.283859
RON 5.091762
RSD 117.392282
RUB 93.468622
RWF 1711.342657
SAR 4.411408
SBD 9.593848
SCR 17.757232
SDG 707.190966
SEK 10.920818
SGD 1.516214
SHP 0.882087
SLE 28.275908
SLL 24654.059615
SOS 670.591011
SRD 45.39442
STD 24334.827655
STN 24.510532
SVC 10.284507
SYP 13001.557283
SZL 19.72456
THB 37.03854
TJS 10.80917
TMT 4.114986
TND 3.437492
TOP 2.830828
TRY 50.202359
TTD 7.977462
TWD 36.978431
TZS 2918.699935
UAH 49.68226
UGX 4186.816917
USD 1.17571
UYU 46.065868
UZS 14220.231506
VES 314.431645
VND 30956.449902
VUV 142.8039
WST 3.267666
XAF 656.241784
XAG 0.018679
XAU 0.000274
XCD 3.177416
XCG 2.118328
XDR 0.816154
XOF 656.241784
XPF 119.331742
YER 280.347694
ZAR 19.755935
ZMK 10582.803308
ZMW 27.239821
ZWL 378.578209
  • SCS

    0.0200

    16.14

    +0.12%

  • RBGPF

    0.4300

    81.6

    +0.53%

  • BCC

    -1.1800

    75.33

    -1.57%

  • CMSD

    0.1150

    23.365

    +0.49%

  • NGG

    1.1000

    76.03

    +1.45%

  • CMSC

    0.0000

    23.3

    0%

  • BTI

    0.6400

    57.74

    +1.11%

  • BCE

    0.2161

    23.61

    +0.92%

  • RIO

    0.1600

    75.82

    +0.21%

  • RELX

    0.7000

    41.08

    +1.7%

  • GSK

    0.4300

    49.24

    +0.87%

  • AZN

    1.7300

    91.56

    +1.89%

  • JRI

    -0.0065

    13.56

    -0.05%

  • RYCEF

    0.3100

    14.95

    +2.07%

  • VOD

    0.1100

    12.7

    +0.87%

  • BP

    -0.0100

    35.25

    -0.03%

Heat will stay on in Europe this winter, but after?
Heat will stay on in Europe this winter, but after? / Photo: Ina FASSBENDER - AFP/File

Heat will stay on in Europe this winter, but after?

Europe is likely to scrape through this winter without cutting off gas customers despite reduced Russian supplies, but even adjusting to colder homes and paying more may not be enough in coming years, analysts say.

Text size:

"I like a hot house, I have to admit... I really used a lot of gas," said Sofie de Rous, who until this year kept her home on the Belgian coast at a toasty 21 degrees Celsius (70F).

But like millions of other Europeans, the 41-year-old employee at an architectural firm has had to turn down the thermostat after energy prices surged following Russia's invasion of Ukraine in February.

Russia's progressive reduction of gas supplies to Europe via pipeline triggered a bidding war for liquefied natural gas (LNG), sending prices sharply higher.

If certain countries like France and Spain froze prices for consumers, others like Belgium let suppliers more or less pass along the higher costs.

"I was a little panicked in the beginning," said de Rous, who saw the gas bill to heat her 90-square-metre (970-square-foot) house in Oostduinkerke jump from 120 euros ($126) per month to 330 euros.

She has lowered her thermostat to 18 degrees and is looking into installing double-pane windows and a solar panel.

Like de Rous, the lack of concern about energy consumption of a whole generation of Europeans ended abruptly in 2022, and everyone is mindful of where their thermostat is set.

If previously natural gas was cheap and plentiful, it is now scarce and expensive.

The European wholesale reference price used to fluctuate little, hovering around 20 euros per megawatt hour. This year, it shot as high as 300 euros before dropping back to around 100 euros.

"It's the most chaotic time I've witnessed in all of those years," Graham Freedman, a European gas analyst at energy consultancy Wood Mackenzie, told AFP.

- Big drops in consumption –

Sky-high energy prices have caused numerous factories, particularly in Germany's chemicals sector which was highly dependent upon cheap Russian gas, to halt operations.

But European nations were able to fill their gas reservoirs and no one has been cut off yet.

"Until February, the very idea of Europe without Russian energy was seen as impossible," said Simone Tagliapietra, a senior fellow at the Bruegel think tank in Brussels.

"What was impossible became possible."

A warm autumn that allowed many consumers to put off turning on their heating also helped put Europe in better position for the winter.

Overall, the reduction in EU gas consumption by consumers and industry was around 25 percent in October compared to the 2019-2021 average for the month, according to calculations by Bruegel.

In Germany, where half the households use gas for heat, data shows consumption down by 20 to 35 percent depending on the week.

"That's much more than anyone expected," said Lion Hirth, a professor of energy policy at the Hertie School in Berlin.

"And that's completely contradictory to the talk that we've been hearing from doomsday talkers saying, people just don't respond. People just keep heating. People don't change their behaviour. People don't respond to prices."

In the space of several months Russia has lost its top gas customer, Europe, with purchases passing from 191 billion cubic metres in 2019 to 90 billion this year.

Wood Mackenzie forecasts deliveries will fall to 38 billion cubic metres next year.

The EU has been able to import large quantities of LNG, but only by outbidding South Asian nations like Pakistan and India.

This has pushed these nations to increase their dependence on coal -- negatively impacting global efforts to curb climate change.

- In 2023? –

Europe's ability to import LNG has been limited by a lack of infrastructure.

While France and Spain each had several terminals to unload LNG from tankers and convert it back into gas at the start of the Ukraine conflict, Germany didn't have one.

And while construction of more LNG terminals is under way, in 2023, unlike at the beginning of this year, Europe will mostly have to do without Russian gas to fill its reservoirs.

This could set up an even fiercer bidding war between European and Asian nations for supplies.

"The key factor is most certainly going to be: what is the weather going to be like this winter," said Laura Page, a gas analyst at commodity data firm Kpler.

"If we have a cold winter in Asia, and we have a cold winter in Europe... this fight will intensify."

The problem is that LNG supplies are limited.

"There isn't enough gas in the world at the moment to actually cope with that loss of supply from Russia," said Wood Mackenzie's Freedman.

New LNG projects to boost supply won't be able to come on line before 2025, meaning Europeans will have to get used to living with homes heated to just 18 degrees.

P.Benes--TPP