Discussion on Gas Demand Reduction, Energy Saving Expansion, and Energy Cooperation Among Member Countries
[Asia Economy Reporter Kim Heeyoon] The Washington Post reported on the 7th (local time) that the European Union (EU) has convened an emergency meeting to devise countermeasures following Russia's reduction and cutoff of gas supplies to Europe in retaliation against Western sanctions.
The emergency meeting is scheduled for the 26th of this month. The Washington Post stated that the main agenda will focus on reducing gas demand, expanding energy conservation, and enhancing energy cooperation among EU member states.
As Russia reduces gas supplies, 12 out of the 27 EU member countries have already been affected, raising concerns that Russia may deliberately shut off the gas valve to Europe entirely during the winter season.
If Russia completely halts gas exports to Europe, the EU's overall gas storage is expected to fall below 75%, far short of the target to fill 90% by November.
Germany, which relied on Russia for half of its gas consumption before the Ukraine war, raised its domestic gas emergency supply plan alert from Level 1 'Early Warning' to Level 2 'Emergency Warning' on the 23rd of last month in preparation.
The German parliament is scheduled to vote on the 7th on a measure allowing the government to limit the operation of unnecessary power plants. A bailout bill for the government to acquire shares of financially struggling energy companies is also set for a parliamentary vote the following day. If passed, Uniper is expected to be the first beneficiary of support.
The French government is reportedly considering nationalizing the power company EDF by increasing its government-held shares from the current 84% to 100%. This is aimed at enabling the government to intervene strongly and respond swiftly in the event of an energy crisis.
French Prime Minister ?lisabeth Borne emphasized in the announcement of the nationalization policy on the 6th, "We must have full control over our energy system and its operation, and secure our sovereignty in the face of the war's consequences."
The Wall Street Journal (WSJ) analyzed that the increasing instability of Russian energy supplies and soaring energy prices are evidence of how governments within Europe plan to increasingly control the energy market proactively.
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