Europe is going through a natural gas crisis, partly self-inflicted. The spectacular increase in gas, but also electricity, prices is threatening to derail economic recovery as Europe emerges from Covid-19. This also includes Cyprus, but for somewhat different reasons, covered later in the article.
Economic recovery has been accompanied by a substantial increase in energy demand in comparison to 2020. At the same time, soaring emission allowance costs have been driving coal out of Europe’s energy mix, with natural gas – as the cleanest fossil fuel – being increasingly used to replace it.