The European Union is ready to overcome this winter’s energy challenges through a strategy combining high gas stocks, reduced consumption and diversification of imports, said Dan Jorgensen, European Commissioner for Energy, on 16 December.
European gas reserves, which had reached a peak of 95.3% of their capacity at the end of October, remain the EU’s main asset despite a decline due to winter demand. According to Gas Infrastructure Europe, stocks had fallen to 76.2% as of December 14, a rapid decline attributed to cold weather and increased electricity production.
“We are ready to face the challenges of this winter, thanks to the efforts that have been made to fill our stocks and reduce our consumption,” Jorgensen said after a meeting of European energy ministers in Brussels.
Significantly lower gas consumption
The European Commission highlighted that the EU reduced its gas consumption by 18% between August 2022 and July 2024 compared to the average of the previous five years. This saving represents approximately 146 billion cubic meters of gas.
This decline is the result of energy efficiency policies, better substitution of other energy sources and the acceleration of imports of liquefied natural gas from new partners such as the United States and Norway.
A controversy surrounding the charge of German neutrality
On the sidelines of discussions on winter preparation, the question of the neutrality charge imposed by Germany on cross-border gas flows raised concerns. Introduced in 2022 to finance the filling of German strategic reserves, this tax penalizes Central European countries such as Austria, Slovakia and the Czech Republic.
Germany has promised to remove this charge from January 2025, but the legislative process has not yet been finalized, worrying its European neighbors. Leonore Gewessler, Austrian Energy Minister, stressed: “We have positive signals, but it is imperative that the law is adopted on time. »
Necessary vigilance regarding gas prices
European gas prices remain under surveillance, remaining around 40 euros per megawatt hour, despite winter pressures. The current neutrality charge, set at 2.50 euros per megawatt hour, could further evolve as Germany adjusts its legislative framework.
According to Trading Hub Europe, the organization responsible for charging, this will be increased to 2.99 euros per megawatt hour on January 1, 2025, but volumes at interconnection points will be exempt. This exemption should reduce costs for neighboring countries while promoting better integration of the European market.
A fragile balance to preserve
The European Union seems confident in its ability to manage winter thanks to cumulative efforts in storage, demand reduction and diversification of import sources. However, Energy Ministers continue to monitor the situation closely to avoid any imbalance in a still fragile energy market.
