Sergey Kondratiev, Deputy Head of the Economic Department of the Institute for Energy and Finance, commented to the Internet portal Gazeta.Ru on the reasons for the increase in gas prices in Europe.
Gas prices in Europe rose on the news of a serious cold snap in the EU and a decrease in electricity production from windmills. This opinion was expressed in a conversation with Gazeta.Ru by Sergey Kondratiev. Exchange prices for gas in Europe increased on Thursday by 11.7% to $2,517.2 per thousand cubic meters.
According to Kondratiev, the second factor is the reduction in electricity generation at wind farms by a third.
“In this case, two factors influenced the growth of quotations. The first is information about a possible serious cooling in Europe, up to frost. Now in Central Europe the weather during the day is plus 12 degrees Celsius. Lowering the temperature to 5-6 degrees will lead to an increase in demand for natural gas. First of all, from the side of the population. This pushes the quotes up,” the expert explained.
“Now windmills produce about 10% of all electricity in the EU. The fall in generation also leads to an increase in gas prices,” the economist said.
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