Latest news with #IvanaRogulj
Euronews
05-04-2025
- Business
- Euronews
Eight countries in Europe use renewables for more than half of their heating and cooling needs
ADVERTISEMENT Russia's invasion of Ukraine continues to underscore the importance of energy security. Renewables play a key role in strengthening that security and diversifying energy sources. The share of renewables has been rising across Europe, but it is doubtful that several countries, particularly the largest economies, will meet the EU's 2030 targets. Upping the amount of renewables used to heat and cool buildings is especially important, as these uses account for nearly half of the EU's total energy consumption according to Eurostat. So how much of Europe's heating and cooling energy comes from renewables? And which countries are leading the way? Related Finland 'ahead of schedule' on coal phase out as Helsinki's Salmisaari plant closes In 2023, the share of renewable energy in heating and cooling reached 26.2 per cent in the EU, closely mirroring the proportion of renewables in the bloc's total energy use. But this share varies widely across Europe - ranging from just 8 per cent in Ireland to 84 per cent in Iceland. Among EU members, Sweden and Estonia reported the highest shares, both at 67 per cent. Why do some countries use more renewables in heating than others? Renewable sources in the dataset include solar and geothermal energy, biofuels, the renewable part of waste, and ambient heat captured by heat pumps for heating. Several factors explain the differences in renewable energy use for heating and cooling, Professor Pawel Oclon of Cracow University of Technology in Poland tells Euronews Green. These include climate conditions, resource availability, and the state of energy infrastructure. Nations with existing fossil fuel systems face tougher transitions. Policy support, investment costs, and urban space also influence progress. Experts from the Institute for European Energy and Climate Policy (IEECP) - Ivana Rogulj, Jean-Sébastien Broc, Filippos Anagnostopoulos, Tomislav Novosel, Indriany Lionggo, and Stavros Spyridakos - say the extent of district heating is another key factor. Countries with a high share of district heating tend to have a smoother pathway toward decarbonising their heating systems. 'It is easier to replace one large gas boiler with a heat pump, biomass boiler or waste heat than to replace thousands of individual boilers with heat pumps,' they explain. Related Gothenburg fined for missing renewable energy goal. Here's why it's happy to take the hit Nordic and Baltic countries dominate the top Nordic countries, except for Norway, and the Baltic states lead Europe in the use of renewable energy for heating and cooling. All reported shares of 54 per cent or higher, more than double the EU average of 26 per cent. Rana Adib, executive director of REN21, a global network of governments, industry experts, NGOs, and academics, explains that these nations tend to have advanced district heating systems, many of which run largely on renewable sources such as geothermal energy, waste heat or, more controversially, biomass . Norway, by contrast, had a significantly lower share at 34 per cent. However, the IEECP experts suggest that Eurostat's data on Norway may be misleading. 'Renewable electricity used to drive heat pumps is not accounted for in the share for heating and cooling to avoid double counting,' according to Eurostat. ADVERTISEMENT The experts point out that more than 90 per cent of Norway's electricity comes from hydropower and wind. 'The dominant source of heating in Norway is electricity,' they say. Related Slovenia, Sweden, Malta: Which European citizens are most and least prepared for climate disasters? Major Western European economies lag behind Several Western European countries, including the EU's four largest economies, show significantly lower incorporation of renewable energy in heating and cooling. Among them, only France (30 per cent) ranked slightly above the EU average of 26 per cent, while the rest fell below. These include Italy (22 per cent), Spain (21 per cent), Germany (17 per cent), Belgium (11 per cent) and the Netherlands (10 per cent), and Ireland (8 per cent). According to Statista, renewable energy accounted for just 7.5 per cent of heating and cooling in the UK in 2018. ADVERTISEMENT Adib notes that oil remains common in rural heating in Ireland, due to weak policies and minimal district heating. 'Studies have shown that 54–57 per cent of total heat demand in Ireland could be met through district heating networks, yet implementation remains limited.' The Netherlands has long relied on natural gas and has only recently begun a major effort to phase out gas boilers, she adds. 'Belgium also relies heavily on gas and suffers from slow building renovation rates and fragmented regional policies that hinder coordinated energy action.' She attributed the low share of renewables in Germany, France, Italy, and Spain to the widespread reliance on individual gas boilers . The IEECP experts further note that electric heating has been promoted in France due to the high availability of nuclear power. ADVERTISEMENT Austria (39.4 per cent) represents a leading example among Central European countries in the deployment of renewable energy for heating and cooling. 'This strong performance is the result of a well-established tradition in the use of biomass - both in individual heating systems and within extensive district heating networks,' the IEECP experts say. Most EU candidate countries reported a higher share of renewable energy use in heating and cooling compared to the EU average, with the exception of Albania (23 per cent), which fell just below. Montenegro, for instance, reached an impressive 67 per cent. Is Europe's renewable heating progress enough? Over the past two decades, Europe has made notable progress in increasing the share of renewables in heating and cooling - rising from around 11.7 per cent in 2004 to approximately 26.2 per cent by 2023, its highest level yet. But is this progress enough? Experts think not. 'While this growth is noteworthy, it remains insufficient,' Oclon says. ADVERTISEMENT Referring to the EU's non-binding target of a 49 per cent renewable share in buildings by 2030, Adib adds: 'This pace - averaging about one percentage point every two years - is far too slow to meet the EU's climate and energy targets.' IEECP experts emphasise the significant differences in progress among countries. 'Many countries are not currently on track to meet these obligations,' they say. The line chart above illustrates just how much progress varies across Europe. Related How the UK drives, eats, and heats its homes need to change, government told What policies can get European countries on track? Prof Oclon recommends increased investment in research to enhance the efficiency of renewable energy system technologies, including photovoltaic panels, solar thermal collectors, heat pumps, and energy storage systems. ADVERTISEMENT Adib of REN21 says there are several key barriers to progress, including a lack of strong policy focus on the sector, the widespread use of gas boilers, slow development of infrastructure compatible with renewables, and inconsistent or inadequate incentives. To accelerate the deployment of renewable heating, she recommends targeted policy action focused on three key technologies: electric heat pumps, decarbonised district heating, and solar thermal systems - both rooftop and large-scale. Is the EU still shifting away from Russian gas? The EU's energy strategy is built on three core pillars: saving energy, producing clean energy and diversifying its supplies. This includes reducing dependency on Russia. To that end, the share of pipeline gas from Russia in EU imports fell sharply - from more than 40 per cent in 2021 to around 8 per cent in 2023 - following the invasion of Ukraine in early 2022. ADVERTISEMENT When combining pipeline gas and LNG, Russia accounted for less than 15 per cent of total EU gas imports, according to the European Commission. However, this share rose to 18.9 per cent in 2024.
Yahoo
24-02-2025
- Business
- Yahoo
Three years on: How Russia's invasion reshaped energy prices across Europe
Three years ago, on 24 February, Russia invaded Ukraine. The war is still ongoing and has had a significant impact on energy prices, with the share of Russia's pipeline gas in EU imports dropping from over 40% in 2021 to about 8% in 2023, according to the European Council. A massive Russian military build-up and escalating hostile rhetoric in 2021, signalling a planned attack on Ukraine, had already triggered a sharp surge in energy commodity prices throughout the year. While European governments implemented various policies to ease the impact on households, household energy prices continued to rise gradually throughout 2021 and surged further following the invasion. Selecting a baseline for price comparisons is challenging. To better illustrate the impact of price fluctuations on households, we use multiple comparisons based on the Household Energy Price Index (HEPI), compiled by Energie-Control Austria, MEKH, and VaasaETT. The "Pre-Invasion One-Year Average" represents the 12-month period from February 2021 to January 2022, while the "Three-Year Post-Invasion Average" covers from February 2022 to January 2025. During the pre-invasion period, the average residential end-user electricity price in EU capitals was 20.5 c€/kWh, rising to 26.5 c€/kWh in the post-invasion period - an increase of 29.5%. During this period, Amsterdam saw the highest increase, with electricity prices rising by 76%, followed by Rome (74%) and Vilnius (64%). "Fossil fuel-dependent markets like the Netherlands faced higher volatility, highlighting the role of energy diversification and regulatory frameworks in price stability," Ivana Rogulj, Wolfgang Eichhammer, and Stavros Spyridakos, senior experts at the Institute for European Energy and Climate Policy (IEECP), told Euronews Business. Dr. Yousef Alshammari, President of the London College of Energy Economics, noted that natural gas accounts for 45% of Italy's electricity mix, while renewables contribute no more than 30%. Among the capitals of Europe's top five economies, London (47%) recorded the second-largest increase after Rome. Paris (30%) was slightly above the EU average (29.5%), while Berlin (19%) experienced a more moderate rise. In contrast, Madrid saw a slight decline (0.4%) in electricity prices between the pre-invasion and post-invasion periods. Regarding why households in Spain have been significantly less affected by the surge in electricity prices, Rogulj, Eichhammer and Spyridakos explained: "Spain's significant wind, solar, and hydro capacity reduced reliance on fossil fuels, limiting exposure to external price shocks. "Spain's regulated electricity tariff (PVPC) balanced price volatility by linking retail electricity prices to longer-term wholesale market averages, protecting consumers from extreme short-term fluctuations", they added. When non-EU capitals are included, Oslo recorded the steepest decline, with electricity prices falling by 10%, followed by Budapest (-9%) and Bucharest (-8%). These cities stand out as exceptions to the overall trend of rising electricity prices across Europe. The changes are in euros, not local currencies, which may affect the results. These results indicate that Western and Northern Europe experienced the sharpest electricity price hikes, while Baltic and Eastern European capitals also saw significant increases. In contrast, Southern Europe faced more moderate price changes. IEECP experts Rogulj, Eichhammer, and Spyridakos stated: "Nordic countries benefit from renewable electricity production from hydropower, geothermal, and wind, reducing exposure to fossil fuel price volatility." Comparing electricity prices from early 2021, when the market was more stable and before tensions between Russia and Ukraine escalated, to January 2025, reveals significant increases. Households in EU capitals paid 36% more for electricity in January 2025 compared to January 2021. When Kyiv is excluded from the analysis, Amsterdam records the highest increase, with electricity prices rising by 89% over this four-year period. Significant increases were also observed in Vilnius (81%), Brussels (77%), and Bern (76%). On the other hand, Budapest (-13%) was the only capital where prices declined. Among the top five economies, London saw the highest surge, with electricity prices rising by 66%, followed by Rome (60%) and Paris (45%). If we compare January 2022 to January 2025, household electricity prices, including taxes, increased by only 3.4% on average across EU capitals. In the EU, the highest increase was recorded in Vilnius (53%), followed by Paris (34%). In the non-EU capital Bern, prices rose by 69% over the same period. Several cities experienced notable declines in electricity prices over the past three years. Oslo saw the sharpest drop at 25%, followed by London (-21%) and Bucharest (-20%) and Copenhagen (-20%). As the line chart below illustrates, electricity prices fluctuated significantly in the capitals of the top five economies following Russia's invasion of Ukraine. Over the past four years, Rome experienced the highest recorded level, reaching 68.7 c€/kWh in October 2022, compared to 43.7 c€/kWh in July 2022. Similarly, London's electricity prices peaked at 64.2 c€/kWh in August 2022, before dropping to 39.5 c€/kWh the following month. Paris had the most stable prices over this period. We only have gas price data for October 2021 before the invasion, while the full dataset is available from January 2022 onward. This means we cannot calculate a pre-invasion average, but the available data still provides valuable insights into price trends. In October 2021, the residential end-user gas price in EU capitals averaged 8.5 c€/kWh. By January 2022, it had already increased to 11.3 c€/kWh, before peaking at 16.5 c€/kWh in September 2022, the highest level recorded in the past three years. As of January 2025, prices had declined to 11.1 c€/kWh, slightly below January 2022 levels, yet still significantly higher than pre-invasion prices. Stockholm recorded the highest three-year post-invasion average (February 2022– January 2025) at 28.7 c€/kWh, followed by Amsterdam at 21.6 c€/kWh. The nature of Sweden's gas market plays a crucial role in this dynamic. Throughout 2022, households in Amsterdam were hit the hardest by surging gas prices. That year, the annual average gas price in Amsterdam reached 31.0 c€/kWh, significantly higher than Stockholm's 23.9 c€/kWh, despite Stockholm leading in the three-year average. Rogulj, Eichhammer, and Spyridakos from the IEECP also attributed rising gas prices in the Netherlands to the suspension of production at the Groningen gas field due to earthquake risks. Budapest (2.6 c€/kWh), Belgrade (4.1 c€/kWh), and Zagreb (4.7 c€/kWh) recorded the lowest three-year average gas prices. In Prague, the three-year average gas price was 110% higher than in October 2021, followed by Berlin (97%), Dublin (86%) and Amsterdam (77%), while the EU average stood at +37%. Dr. Cyril Stephanos from acatech, the National Academy of Science and Engineering, pointed out that Germany had no operational LNG terminals at the time of Russia's attack on Ukraine. "Both Germany and Austria have been highly dependent on natural gas imports from Russia", he said. These have been partially substituted by increased supplies from Norway and through the LNG market. "However, LNG imports tend to be more expensive than pipeline gas due to the additional costs of compression, transportation, and decompression", he added. IEECP experts also emphasised that seeking costly alternatives led to sharp price hikes. In contrast, Budapest (-26%) and Bucharest (-9%) saw lower gas prices compared to October 2021. Despite recent price stabilisation, gas prices in EU capitals were still 31% higher in January 2025 compared to October 2021. Warsaw saw the sharpest increase (109%), followed by Lisbon (77%) and Berlin (72%). Gas prices were highly volatile throughout 2022, with Amsterdam experiencing significant fluctuations. However, starting in 2023, prices became more stable compared to 2022, particularly in Amsterdam and the top five European economies. Dr. Alshammari explained that multiple measures taken across Europe have contributed to cooling down natural gas prices. These measures include filling gas storage to nearly 100% capacity, securing alternative suppliers, implementing a price cap on Russian gas, which still allows European countries to import, and adopting energy efficiency measures to reduce energy demand. Professor Jan Osicka, Program Director of Energy Policy Studies at Masaryk University in Czechia, believes that the EU has managed the crisis well. "The solidarity mechanism has worked, the internal market has remained functional and its design hasn't been tampered with too much", he said. However, Rogulj, Eichhammer, and Spyridakos emphasise that long-term price stability depends on global supply dynamics and the acceleration of renewable energy integration, especially in the gas sector.
Euronews
24-02-2025
- Business
- Euronews
Three years on: How Russia's invasion reshaped energy prices across Europe
Three years ago, on 24 February, Russia invaded Ukraine. The war is still ongoing and has had a significant impact on energy prices, with the share of Russia's pipeline gas in EU imports dropping from over 40% in 2021 to about 8% in 2023, according to the European Council. A massive Russian military build-up and escalating hostile rhetoric in 2021, signalling a planned attack on Ukraine, had already triggered a sharp surge in energy commodity prices throughout the year. While European governments implemented various policies to ease the impact on households, household energy prices continued to rise gradually throughout 2021 and surged further following the invasion. Selecting a baseline for price comparisons is challenging. To better illustrate the impact of price fluctuations on households, we use multiple comparisons based on the Household Energy Price Index (HEPI), compiled by Energie-Control Austria, MEKH, and VaasaETT. The "Pre-Invasion One-Year Average" represents the 12-month period from February 2021 to January 2022, while the "Three-Year Post-Invasion Average" covers from February 2022 to January 2025. During the pre-invasion period, the average residential end-user electricity price in EU capitals was 20.5 c€/kWh, rising to 26.5 c€/kWh in the post-invasion period - an increase of 29.5%. During this period, Amsterdam saw the highest increase, with electricity prices rising by 76%, followed by Rome (74%) and Vilnius (64%). "Fossil fuel-dependent markets like the Netherlands faced higher volatility, highlighting the role of energy diversification and regulatory frameworks in price stability," Ivana Rogulj, Wolfgang Eichhammer, and Stavros Spyridakos, experts at the Institute for European Energy and Climate Policy (IEECP), told Euronews Business. Dr. Yousef Alshammari, President of the London College of Energy Economics, noted that natural gas accounts for 45% of Italy's electricity mix, while renewables contribute no more than 30%. Among the capitals of Europe's top five economies, London (47%) recorded the second-largest increase after Rome. Paris (30%) was slightly above the EU average (29.5%), while Berlin (19%) experienced a more moderate rise. The impact of electricity mix In contrast, Madrid saw a slight decline (0.4%) in electricity prices between the pre-invasion and post-invasion periods. Regarding why households in Spain have been significantly less affected by the surge in electricity prices, Rogulj, Eichhammer and Spyridakos explained: "Spain's significant wind, solar, and hydro capacity reduced reliance on fossil fuels, limiting exposure to external price shocks. "Spain's regulated electricity tariff (PVPC) balanced price volatility by linking retail electricity prices to longer-term wholesale market averages, protecting consumers from extreme short-term fluctuations", they added. When non-EU capitals are included, Oslo recorded the steepest decline, with electricity prices falling by 10%, followed by Budapest (-9%) and Bucharest (-8%). These cities stand out as exceptions to the overall trend of rising electricity prices across Europe. The changes are in euros, not local currencies, which may affect the results. These results indicate that Western and Northern Europe experienced the sharpest electricity price hikes, while Baltic and Eastern European capitals also saw significant increases. In contrast, Southern Europe faced more moderate price changes. IEECP experts Rogulj, Eichhammer, and Spyridakos stated: "Nordic countries benefit from renewable electricity production from hydropower, geothermal, and wind, reducing exposure to fossil fuel price volatility." Electricity prices: Before the crisis vs today Comparing electricity prices from early 2021, when the market was more stable and before tensions between Russia and Ukraine escalated, to January 2025, reveals significant increases. Households in EU capitals paid 36% more for electricity in January 2025 compared to January 2021. When Kyiv is excluded from the analysis, Amsterdam records the highest increase, with electricity prices rising by 89% over this four-year period. Significant increases were also observed in Vilnius (81%), Brussels (77%), and Bern (76%). On the other hand, Budapest (-13%) was the only capital where prices declined. Among the top five economies, London saw the highest surge, with electricity prices rising by 66%, followed by Rome (60%) and Paris (45%). If we compare January 2022 to January 2025, household electricity prices, including taxes, increased by only 3.4% on average across EU capitals. In the EU, the highest increase was recorded in Vilnius (53%), followed by Paris (34%). In the non-EU capital Bern, prices rose by 69% over the same period. Several cities experienced notable declines in electricity prices over the past three years. Oslo saw the sharpest drop at 25%, followed by London (-21%) and Bucharest (-20%) and Copenhagen (-20%). High price volatility in the post-invasion period As the line chart below illustrates, electricity prices fluctuated significantly in the capitals of the top five economies following Russia's invasion of Ukraine. Over the past four years, Rome experienced the highest recorded level, reaching 68.7 c€/kWh in October 2022, compared to 43.7 c€/kWh in July 2022. Similarly, London's electricity prices peaked at 64.2 c€/kWh in August 2022, before dropping to 39.5 c€/kWh the following month. Paris had the most stable prices over this period. How have residential gas prices changed since the Russian invasion? We only have gas price data for October 2021 before the invasion, while the full dataset is available from January 2022 onward. This means we cannot calculate a pre-invasion average, but the available data still provides valuable insights into price trends. In October 2021, the residential end-user gas price in EU capitals averaged 8.5 c€/kWh. By January 2022, it had already increased to 11.3 c€/kWh, before peaking at 16.5 c€/kWh in September 2022, the highest level recorded in the past three years. As of January 2025, prices had declined to 11.1 c€/kWh, slightly below January 2022 levels, yet still significantly higher than pre-invasion prices. Stockholm recorded the highest three-year post-invasion average (February 2022– January 2025) at 28.7 c€/kWh, followed by Amsterdam at 21.6 c€/kWh. The nature of Sweden's gas market plays a crucial role in this dynamic. Amsterdam hit hardest by surging gas prices in 2022 Throughout 2022, households in Amsterdam were hit the hardest by surging gas prices. That year, the annual average gas price in Amsterdam reached 31.0 c€/kWh, significantly higher than Stockholm's 23.9 c€/kWh, despite Stockholm leading in the three-year average. Rogulj, Eichhammer, and Spyridakos from the IEECP also attributed rising gas prices in the Netherlands to the suspension of production at the Groningen gas field due to earthquake risks. Budapest (2.6 c€/kWh), Belgrade (4.1 c€/kWh), and Zagreb (4.7 c€/kWh) recorded the lowest three-year average gas prices. In Prague, the three-year average gas price was 110% higher than in October 2021, followed by Berlin (97%), Dublin (86%) and Amsterdam (77%), while the EU average stood at +37%. Dr. Cyril Stephanos from acatech, the National Academy of Science and Engineering, pointed out that Germany had no operational LNG terminals at the time of Russia's attack on Ukraine. "Both Germany and Austria have been highly dependent on natural gas imports from Russia", he said. These have been partially substituted by increased supplies from Norway and through the LNG market. "However, LNG imports tend to be more expensive than pipeline gas due to the additional costs of compression, transportation, and decompression", he added. IEECP experts also emphasised that seeking costly alternatives led to sharp price hikes. In contrast, Budapest (-26%) and Bucharest (-9%) saw lower gas prices compared to October 2021. Despite recent price stabilisation, gas prices in EU capitals were still 31% higher in January 2025 compared to October 2021. Warsaw saw the sharpest increase (109%), followed by Lisbon (77%) and Berlin (72%). Gas prices were highly volatile throughout 2022, with Amsterdam experiencing significant fluctuations. However, starting in 2023, prices became more stable compared to 2022, particularly in Amsterdam and the top five European economies. Dr. Alshammari explained that multiple measures taken across Europe have contributed to cooling down natural gas prices. These measures include filling gas storage to nearly 100% capacity, securing alternative suppliers, implementing a price cap on Russian gas, which still allows European countries to import, and adopting energy efficiency measures to reduce energy demand. The performance of the EU Professor Jan Osicka, Program Director of Energy Policy Studies at Masaryk University in Czechia, believes that the EU has managed the crisis well. "The solidarity mechanism has worked, the internal market has remained functional and its design hasn't been tampered with too much", he said. However, Rogulj, Eichhammer, and Spyridakos emphasise that long-term price stability depends on global supply dynamics and the acceleration of renewable energy integration, especially in the gas sector.
