"This is an increase in energy demand as we emerge from the restrictions imposed by the pandemic, combined with a reduction in the supply of gas on the world market," Tim Gore, head of the Circular Economy program, told Euronews and Low Carbon from the Institute for European Environmental Policy (IEEP).
"Then there are other factors that aggravate the problem, especially in Europe. We have managed to get the coal out of the grid, and that coincides with a recent period in which wind power has been less due to the weather."
The problems began to develop in winter, when temperatures that were colder than expected caused a demand for energy for heating that was higher than usual. This, in turn, led to a notable decrease in gas reserves, which reached a worrying 30% in March. In the spring, as the vaccination campaign gained ground across the continent, business activity began to intensify rapidly, with offices, restaurants and other venues reopening and consumers eager to spend their savings from lockdown.
The economic recovery triggered a new wave of demand for energy, which increased further during the summer, when sweltering temperatures pushed people to use air conditioning and refrigeration systems. East Asian countries then joined Europe in their quest for energy to jump-start their devastated economies.
"The pipeline supplies to Europe that we receive from countries like Russia, Norway and Algeria, despite this higher price, have not increased. Suppliers have maintained their usual volumes. And that is a bit strange, because normally if the price goes up and you are a supplier and you have spare capacity, you could take this opportunity to sell more gas at a higher price, that hasn't happened yet.
With companies from around the world trying to get hold of energy sources, prices began to rise steadily. In August, they broke records. Gas is traditionally cheaper in summer and companies take advantage of the moment to store it in large volumes to be well prepared before winter hits. But the current price crisis altered custom and current stocks are historically low for this time of year, a worrying sign for the next few months.
