Gref called the causes of the energy crisis in Europe

The main causes of the energy crisis in Europe are the reduction in renewable energy production and the record low level of gas reserves in European underground storage, but at the root are errors in the planning of European countries for their energy transition. This was stated by the head of Sberbank German Gref, RIA Novosti reports.

“There are several reasons for the energy crisis in Europe. First, due to the rapid recovery of the world economy, global competition for energy resources has intensified. Secondly, the production of renewable energy has decreased, primarily from wind farms,” he said, adding that the low level of gas reserves in European underground storage facilities and the lack of additional supplies also played a role in the energy crisis.

According to him, the current energy crisis in Europe is not a crisis of renewable electricity, but a crisis of energy transition planning and a gas crisis. “Here I agree with the President of Russia, who pointed out the shortcomings of planning for the European energy transition, noting that European regulators made a mistake by abandoning the system of long-term gas contracts. After all, earlier Europeans purchased more than 90% of gas under long-term contracts, and this guaranteed them the stability of all conditions,” Gref added.

The head of Sberbank believes that the current energy price boom and the rising cost of electricity do not change the “rules of the game”, however, the identified systemic problems need to be addressed through joint efforts. At the same time, Gref admitted that the European Commission and national governments would reconsider the energy policy priorities at the end of 2021. “It is already clear that the decarbonization of the Russian economy should be based on the formation of a sustainable basket of low-carbon energy sources, including nuclear and hydroelectric power plants, as well as gas generation equipped with carbon dioxide capture and storage systems,” he concluded.