Once considered a “pioneer” in the transition to alternative energy, Europe is now in an unprecedented energy crisis. With limited LNG import capacity and its supply of natural gas...
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Once considered a “pioneer” in the transition to alternative energy, Europe is now in an unprecedented energy crisis. With limited LNG import capacity and its supply of natural gas from Russia cut off, Europe is reaching the point of desperation. The short supply of natural gas, which is primarily used to heat homes and generate electricity, is risking the quality of life of Europe’s citizens, the sustainability of its businesses, and the careers of its politicians.
Rather than attempting to rapidly add local supply, the EU is choosing to balance the market by forcibly lowering demand while subsidizing consumption—European Commission President Ursula von der Leyen recently announced that the EU would propose a “mandatory target” for reducing electricity consumption during peak demand. While energy rationing measures may dampen demand, they are not a viable long-term solution, particularly as Europe faces severe supply shortages of fossil fuels that may last for years due to restrictive green policy and the ongoing conflict with Russia.
The energy crisis that is presently unfolding is the result of years of underinvestment in and hostile policies towards fossil fuel energy infrastructure, along with policies that encouraged a shift towards less reliable renewable energy. The timeline for the impending crisis was only accelerated when Russia invaded Ukraine, and Europe subsequently imposed sanctions. These have resulted in acute natural gas shortages, which have driven natural gas and associated power prices in Europe much higher: