Europe told to turn down the heating in Russia gas standoff -Breaking
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© Reuters. Robert Habeck (German Economy Minister) listens before listening to Klara Geywitz (L), Housing Minister Marco Buschmann and the Justice Minister Marco Buschmann during the weekly cabinet meeting held in Berlin, Germany, 30 March 2022. Kay Nietfeld/POOL via REUTERS2/2
Susanna Twidale and Kate Abnett
BRUSSELS/LONDON – Fears over a Russian gas shortage prompted European countries to request that people consume less energy on Wednesday. It could be a big move with huge potential results.
Although governments are reluctant to take a risk due to rising energy costs and limited supplies, some countries have begun shifting their message.
Robert Habeck from Germany’s Economy Ministry stated that every kilowatt-hour is important as Germany has declared an “early warning”, indicating that there could be a gas emergency.
Paris’s International Energy Agency (IEA), agrees with the statement that small behavioral changes, when made on a large-scale, can dramatically reduce oil and gas demand.
The European Union estimates that lowering the thermostats of buildings in Europe by 2 Celsius will save approximately 20 billion cubic metres gas. That’s about $28 million at current prices.
This is also 13% of the estimated 155 billion cubic meters that the bloc of 27 nations buys annually from Russia. That, in turn, accounts for 40% of EU’s gas consumption.
On Wednesday, the Dutch government followed Germany’s lead and announced that it will launch a campaign asking people to use less gasoline. France’s regulator asked citizens collectively to cut down on their gas consumption.
Simone Tagliapietra (senior fellow at think-tank Bruegel) said the government should have urged citizens earlier in the year to reduce energy usage to aid manage the shortage. But politicians resisted such a request because they “smell like austerity”.
Every billion cubic meters of gas that isn’t consumed, it’s crucial. He said that the gas is extremely expensive and that we should now fill up our storage before next winter.
YOU CHOOSE
Instead of asking consumers to reduce their energy consumption, the governments are primarily looking at ways for utilities to be capped and alternative fuel sources.
Britain, France, Itay and Germany also announced plans to lower petrol prices this month, after crude oil hit its highest level since 2008. Campaigners have criticized the announcements as fossil fuel subsidies.
Since Russia invaded Ukraine, Brussels declared that it would reduce its Russian gas imports to the EU by at least two-thirds in this year. It also plans to eliminate Russian gas use by 2027.
A reduction in demand would reduce any impact on supply cuts if Russia reduced exports. Russia’s recent statements that Russia should begin paying gas prices in Russian roubles have made this more concerning.
The detailed EU plan for reducing dependence on Russian fossil fuels will be published in May. However, a blueprint that was released this month shows Brussels will increase non-Russian imports and expand renewable energy more quickly. It also plans to swap millions of Russian gas boilers with heat pumps, renovate buildings, and reduce energy consumption.
These solutions are likely to take time. The European Commission suggests consumers may be able to help reduce the demand for these products immediately.
Frans Timmermans (EU climate policy chief) stated, “Your decisions in energy consumption will determine how strong you are in your reaction to Russia.”
The temporary cutting of demand will also aid countries in building up their gas reserves for next winter. It is a short-term solution that allows governments to secure long-term alternatives to Russian fuel.
Adeline Rochet (policy expert, climate think-tank E3G) stated that there are still opportunities for energy saving measures.
These habits can be a good way to reduce carbon dioxide emissions if they’re maintained.
MOVE TO SLOW LANE
Christina Demski of Cardiff University’s School of Psychology, an expert on consumer behavior in energy, suggested that Europeans may be open to receiving such messages due to rising energy prices and their desire to demonstrate solidarity with Ukraine.
People are more likely make changes in their behaviour if it is a request that they value,” she stated. She also said that those asking for behavior change should not be targeted at vulnerable households that lack the ability to adjust their consumption or are struggling to pay bills.
Only few countries are open to the possibility of reducing oil consumption. This despite Russia’s intervention in Ukraine, which it calls a “special military operation”, providing 27% oil imports for the EU.
Denmark has been considering a proposal that would temporarily lower highway speeds limits. Eamon Ryan (Ireland’s transport minister) suggested that driving slowly could help save fuel, when the government announced a reduction in petrol duties this month.
Last week the IEA released options to lower oil demand within advanced economies. These options could be reduced by 2.7 million barrels per hour (bpd), in four months. That’s equivalent to all of China’s car demand.
Most of the options will require customers to alter their behaviors.
Speed limits could be lowered by 10 km/h in advanced economies to save 290,000. bpd for cars and 140,000 bpd for trucks. The IEA stated that working from home for three days a work week could reduce 500,000 bpd and fuel-saving techniques such as car sharing could help save 470,000 bpd.
Some countries are hostile. Britain, no longer a member of the EU, has rejected the IEA’s proposals. It plans to substitute the Russia-sourced 8% oil imports with new supplies for this year.
A spokesperson for the government stated that there is no reason to follow this advice in the UK.
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