More than a year has now passed since the start of the energy crisis, which rocked the entire planet, including our country, and the situation seems to be settling. Natural gas prices have returned to pre-crisis levels, while significant steps are being taken toward energy independence from Russian natural gas and the simultaneous development of renewable energy sources (RES). At the same time, a range of subsidy programs are supporting households and businesses seeking to achieve an energy upgrade.
The plunge in natural gas prices
Perhaps the most significant development recently has been the steady plunge in natural gas prices, which are now below 30 euros, at multi-month lows. This decline is due to a combination of low demand and abundant supplies of liquefied natural gas (LNG), and is further reinforced by the increased presence of renewable energy in the energy mix. The key question now is how the market will move as the coming winter approaches,as there are fears that increased demand will push prices higher still. The reassuring news is that, according to data from Gas Infrastructure Europe, in early April the capacity of European gas storage facilities stood at 55,7%, the highest level for a comparable time of year since 2011, while it is currently estimated at 61%. However, it remains to be seen how the coming months will unfold, particularly September and October, when natural gas availability is expected to be—and has been—locked in.
Subsidies for businesses and households
At the same time, the “green transition” is progressing rapidly, supported by significant subsidies offered to businesses and households for this purpose.
Specifically, through Produce e-Green and the Save and Make Autonomous, Move Electric, Green Taxis, Charge Everywhere, Save – Change Appliances, Solar Panels on the Roof, and Recycle – Change Water Heater programs, the Ministry of Environment and Energy is working to achieve the medium-term target of 2030 for reducing emissions and energy costs, as well as the overarching goal of achieving climate neutrality by 2050.
Meanwhile, the “Renovate – Rent” program, which is part of the “Affordable Housing” umbrella program, supports the renovation of privately owned homes so that they can subsequently be offered for rent. It forms part of housing policy aimed at supporting young people, families and vulnerable social groups.
An additional 5 billion euros through the Recovery Fund
The strong investment interest in “green” investments is also reflected in the fact that our country recently submitted a request to the European Commission to secure additional loan resources from the Recovery and Resilience Facility, amounting to 5 billion euros, under REPowerEU.
The 5 billion euros will primarily be used to finance private energy investments—through loans and venture capital—which will involve:
- Renewable Energy Sources (RES) projects, e.g. solar and wind power, biomethane, green hydrogen, etc.
- Energy efficiency projects, e.g. improvements to existing business premises, infrastructure upgrades and increased efficiency in production processes
- Initiatives to promote “clean” transport
- Projects providing access to clean energy, such as off-grid solutions and distributed electricity networks
- Battery Energy Storage Systems (BESS), etc.
It should be noted that REPowerEU is the European Commission’s plan to make Europe independent of Russian fossil fuels well before 2030, in light of Russia’s invasion of Ukraine. It is a plan for:
- saving energy
- producing clean energy
- diversifying our energy supply
Source: Newsbomb
