Europe’s Tough Energy Choices

The EU’s energy sector is in a severe shock. The Kremlin’s deliberate choice to limit natural gas exports to Europe is causing lasting damage, which is ricocheting in many directions. Electricity prices have skyrocketed in all member states, setting new grim records. Natural gas rates are also soaring, while conventional alternatives such as coal and timber are becoming pricier or more limited in supply. Leading energy utilities like Uniper SE and Électricité de France (EDF) are asking for state bailouts to recover their huge losses. European governments are pumping billions of euros each month in order to keep energy prices artificially lower for end users. Most worryingly, European citizens are asking if there will be sufficient power supply during the winter to keep homes warm and businesses running. As the EU is in the eye of the energy storm, the most important question remains, what is there to be done?