It is not just in Norway that there is a power crisis. There is a shortage of energy in Europe, and the prices of electricity and gas are sky high. The reasons are complex: Russia’s war in Ukraine. Large cuts in the import of Russian gas. Decommissioning of coal and nuclear power. A slow transition to other energy sources. Increased inflation makes it all the more difficult. Roman Vakulchuk, senior researcher on energy at NUPI, says the EU countries have come up with many and varied attempts to solve the crisis. – There appear to be many emergency solutions on paper, but it takes time to find practical solutions. Here are some of the ways Europe is facing the energy crisis: Germany: Cheap buses and heat pumps Photo: MICHAEL KAPPELER / AFP The Germans have the highest electricity prices in the EU. According to Reuters, over 7 million Germans will have an electricity bill that is 60 percent higher in 2022 than the previous year. Now they are increasing support for commuters, cutting tax on energy and increasing support for heat pumps, among other things. They have also given a lump sum of up to 300 euros and introduced a heavy discount on public transport: A monthly pass now costs nine euros. In addition, households with low incomes have received financial support to deal with increased prices. This is written by the think tank Bruegel, which has gone through the EU countries’ measures. DIMMER THE LIGHTS: The lights around the Victory Column in Berlin are turned down to use less energy. Photo: LISI NIESNER / Reuters Sweden: Increased child benefit and cheaper petrol Sweden has lowered the tax on petrol to the lowest that is legal under EU regulations: 0.71 euros per litre. They have increased child benefit by 128 euros per month. Last winter, households that used more than 2,000 kWh each month (1.8 million households) received support of 195 euros from December to February. Sweden’s Prime Minister Magdalena Anderson has given people direct financial support. Photo: JANERIK HENRIKSSON / AFP Spain Spain recently introduced a law not to cool down public and commercial buildings to more than 27 degrees when using air conditioning. The limit for heating in the same building is 19 degrees in winter. Lights in shops must be switched off at 10 p.m. The authorities also encourage increased use of home offices to save energy on transport and heating. Recently, Spain’s Prime Minister Pedro Sanchéz urged the country’s leaders to ditch the tie in the heat. Spain and Portugal, which are not connected to Northern Europe’s energy grid, have received permission from the EU to separate electricity prices from gas prices. The authorities have reduced the price of electricity. In Portugal, those with a low income get a 33.8 per cent discount on both electricity and gas bills. URO: Demonstrators in Spain protested against high petrol prices in March. Photo: PIERRE-PHILIPPE MARCOU / AFP Hungary: Fixed price below market price In Norway, Jonas Gahr Støre does not want to talk about a maximum price for energy, but in Hungary this has been legislated for a long time. Hungary also has a maximum price of 1.30 euros per liter for petrol and diesel. To pay for this, they have introduced a higher tax for energy companies, a so-called windfall tax (one-off tax on unexpectedly high profits). France: Cash support and maximum price 38 million people in France earn less than 2,000 euros a month, after tax. All of these have received 100 euros in direct financial support to pay for increased energy prices. France also has a maximum price for gas until 2022. They have cut taxes on electricity and petrol, and have increased investment in solar and wind energy. HELIODROME: In the south of France, designed as a large sundial, which catches the sun and provides shade. Photo: PATRICK HERTZOG / AFP Poland: Tax cuts and “Putin shield” Polish authorities are working on a Putin shield, a package of measures to shield the part of the economy that is directly affected by Russia’s war in Ukraine. They have cut the value added tax (VAT) on food, gas and fertilizer to 0. They provide direct cash support of up to 106 euros a year, depending on income and living situation. Denmark: Around 320,000 homes received around 800 euros in heating support last winter. At the same time, the authorities are spending 33 million euros to replace heat sources in households that use gas for heating. They have also started a campaign for increased energy efficiency. Photo: Erik Johansen / NTB Austria: Money in your pocket The government in Austria has chosen to give almost all households cash support. It varies from 210 euros to 250 euros in 2022. They have also introduced cuts in the energy tax and increased subsidies for commuters. A tax on carbon emissions will give citizens a “climate bonus” of around 500 euros for adults and 250 euros for children. No EU solution on the table There is great variation in how much money the various EU countries have put on the table in response to the crisis. Germany has spent by far the most money on subsidies to compensate for the high energy prices: The country has spent 60.2 billion euros, around 1.7 percent of gross national product (GDP). Greece and Lithuania both spend over 3 percent of GDP on support for energy prices. By comparison, the Norwegian measures have cost 2.3 billion euros, according to the think tank Bruegel. That is significantly more than roughly equally populous countries such as Denmark (0.3 billion), Finland (1.2 billion), Slovakia (1 billion) and Ireland (1 billion) Roman Vakulchuk, senior researcher on energy at NUPI, says there is great variation among the EU countries. Vakulchuk compares the energy crisis to the corona pandemic: Authorities are looking for solutions, but are not acting quickly enough. Roman Vakulchuk, senior researcher NUPI. Photo: NUPI Return to the home office Vakulchuk himself has several suggestions: Rationing of electricity: It may become necessary for both industry and households. Closed schools and home office: Return to the home office in the coldest months of the year. In this way, a lot of energy is saved in large buildings. It can go to households. Increased energy efficiency: Germany is far ahead here, Norway far behind after years of cheap electricity. Businesses sell energy they do not use to households. If they get a good price, it can provide an incentive for energy saving for the industry. It should be made easier and faster to approve applications for solar energy and wind turbines. How long the shortage of energy and subsequent high prices will last depends on several factors: Among them is the war in Ukraine and how quickly Europe can build green energy. The climate will also have an impact, says Vakulchuk: A warm winter can minimize the crisis. A hot summer, as we see in large parts of Europe, can increase it due to water shortages and high energy consumption. He says Norway can learn energy efficiency from Germany. And that Norway’s rapid switch to electric cars can be a lesson for others. – There, Norway made the big and important changes changes quickly. It shows that Norway can act quickly.
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This is how they solve the energy crisis in Europe – news Urix – Foreign news and documentaries
