Page 14 - FSUOGM Week 42 2021

FSUOGM POLICY FSUOGM

Putin blames low wind power

output for gas crisis

EUROPE LOW wind power output in Europe has played have alleviated the shortages, the Russian presi-
a role in causing the current gas supply crisis in dent said, exacerbating the crisis.
The Russian leader Europe, Russian president Vladimir Putin said And adding to demand, some European
blamed European policy in a speech on October 13. countries also failed to stockpile enough gas
for the crisis. "Over the last decade, the capacity of renew- in the summer months ahead of the winter
ables has increased in Europe. this might be a heating season, he said. Putin also blamed
good thing," Putin said at the plenary session the shift towards spot trades and gas hub
of the Russian Energy Week in Moscow. "But pricing and away from long-term, oil-in-
because of shortages in wind turbine produc- dexed supply contracts that provide greater
tion, the European market faced an energy defi- price stability.
cit, which led energy prices to spike. And this "It's like people don't see the numbers and
triggered an increase in gas prices.” don't see the reality, or they are just covering
Russia has been criticised for exacerbating the their mistakes over the last decade," Putin said.
gas crisis by withholding some supply – whether "The European energy system is filled with vul-
to put pressure on the EU to allow Nord Stream nerabilities and this caused the crisis on the
2's launch, or simply to drive up prices. However, market.”
Putin insisted that Russia complied with its con- He said that such shortages in Russia were
tractual supply obligations in full. inconceivable, noting that Russian households
As bne IntelliNews reported, market forces were shielded from spikes in energy costs by
have played a major role in driving up gas prices price regulation.
to a historical level this year thanks to a steep The president reiterated that Russia was ready
“V” shaped market in demand and constric- to work with its European partners to improve
tions on supply due to technical limitations on the continent's energy security, but made it clear
Russia’s ability to deliver gas to Europe have also that the EU members that want to increase sup-
contributed to the crisis. Putin pointed out that plies beyond the existing agreements need to
demand for gas in Russia is also very high as it is sign off on long-term contracts and implied that
also scrambling to fill its own storage ahead of Russia was not prepared to simply make more
the winter’s heating season. gas available on the spot markets.
Higher prices for energy in Asia have also “We have to understand how much our part-
drawn off much of the LNG supplies that could ners in Europe want to buy,” Putin said. ™

P14 www. NEWSBASE .com Week 42 20•October•2021