Europe and energy prices

EU leaders are looking for solutions to slow down the rise in electricity and natural gas prices

Eugen Coroianu, 25.10.2021, 13:50

The energy crunch will be once again on the agenda of the December European
Council meeting, senior EU officials announced after last week’s meeting
devoted to this topic.

In the meantime, the Commission is
tasked with running an analysis on the operation of the European electricity
and natural gas market and on the carbon trading market, after several member
states blamed the rise in energy prices on problems in these fields.

Nuclear energy is not mentioned in
the Council meeting’s conclusions although it had been included in the original
text. However, countries like France, Romania and others requested the European
Commission to rank nuclear energy and gas as transition sources this autumn,
until clean energy sources will be able to cover most of the Union’s energy
needs.

There is no doubt that if we
seek cleaner energy, we need interim solutions. It is very possible and
desirable for renewable sources, including solar energy, wind power and so on,
to account for most of the energy output by 2040-2050. But until we get there,
our opinion in Romania is that we need to use nuclear power plants, to upgrade them
and broaden nuclear power sources. At the same time, Romania needs and is
determined to use natural gas for heating, for electricity production and for
industry. So we certainly must have nuclear power and gas, the president of
Romania Klaus Iohannis said in Brussels, and emphasised that it would be
excellent for these forms of energy to be fundable from EU sources.

The European Commission president,
Ursula von der Leyen, seems to have eventually accepted this view, and said
after the meeting that, in the medium and long term, additional steps will be
prepared to enhance Europe’s energy independence and resilience.

She said a stable source, i.e.
nuclear power, is necessary, and the role of natural gas as transitional fuel
will be preserved. The Commission will present a draft document in this
respect, von der Leyen said.

She added that efforts are made to
set up a strategic gas reserve and to jointly procure energy. We will step up
initiatives to contact as diverse suppliers as possible. We will diversify
sources and speed up interconnection, the Commission president also said.

EU reference prices for natural gas soared
by over 300% since January, because of supply problems and high demand. The hike
pushed electricity prices in Europe to the highest level in recent times, and
the situation is likely to continue until the end of the year, keeping heating bills
on the rise. To mitigate the impact on citizens, Romania and other member
states are taking measures to support vulnerable households and struggling companies.
(tr. A.M. Popescu)