In order to ensure security of gas supply over the years and to comply with the gas storage target of 90% on 1 November of each year, the Gas Storage Regulation has conferred implementing powers to the Commission to set the filling trajectory for each Member State with underground gas storage facilities from 2023 and the following years, as based on the draft filling trajectory submitted by each such Member State.
Between August 2022 and December 2023, EU Member States reduced overall gas consumption by 18% (ca. 101 bcm). The residential and industrial sectors contributed respectively 43% and 47% to overall demand reductions while the power sector contributed 10%. According to the data supplied by the Joint Research Centre, the winter season of 2022/23 experienced a 7% reduction in heating-degree days (HDDs) compared to the five-year average, suggesting a slightly milder winter.
Norway is essential in the european energy market, standing as the principal fossil gas supplier for the EU. However, the interests of norway and the EU do not always coincide. in particular, the EU has expressed concerns about the further expansion of oil and fossil gas activity in Arctic areas. Norway, on the other hand, has distributed 141 exploration licences in the Arctic Barents Sea since 2010. The EU has also initiated policies that will decrease the demand for fossil fuels in the short and long term, while Norway has introduced policies to increase the supply of oil and gas.
Both gas and electricity prices have increased substantially since 2021. Prices of electricity generated by gas effectively set the wholesale price for all generation, so there is a close link between the price trends of the two fuels. However, the increase in prices during the ‘energy crisis’ was larger for gas. Unit prices for gas under the direct debit price cap were 3.3 p/kWh in summer 2021, 7.4 p/kWh under the summer 2022 cap and 10.3 p/kWh under the EPG. The total increase over this period was 210%. They would have increased further to 17.1 p/kWh in the first quarter […]
AggregateEU launches first mid-term tender to ensure stability and predictability of energy supplies
Today (February 15), under the AggregateEU platform for joint gas purchasing, the Commission is launching a first mid-term tender, where...
Cold start: natural gas demand in northwest Europe jumped by 65% last week amidst colder temperatures and lower wind generation....
2022 witnessed a notable increase in UGS capacity, largely driven by the global gas crisis which emphasized the importance of...