Back to the complete issue
Monday, 15 August 2022

Natural gas prices are soaring in Europe thanks to climate change — but renewables projects still face bureaucratic roadblocks

Heatwaves in Europe are driving up gas prices: Benchmark futures for natural gas in Europe rose 2.5% today as low water levels in rivers across the continent have hindered the movement of energy sources such as diesel and coal, leading to more demand for gas, Bloomberg reports. The low water levels come as a result of heat waves across Europe that are drying up rivers and waterways.

Europe has already been contending with soaring gas prices and is facing the prospect of rationing in the coming months, after Russia curbed gas supplies to several European countries, with shipments through the key Nord Stream pipeline at around 20% of capacity. The increased demand for gas could set back governments’ efforts to reduce gas consumption and store more for colder months.

With that energy crunch coming in hot, it’s all the more important for Europe to slash red tape for renewables players: Two of the world’s largest renewable energy companies are voicing their frustration over delayed approvals for new wind farms, arguing that such delays risk green goals, the Financial Times reports, citing the companies’ chief execs. Denmark’s Vestas Wind Systems, the world’s biggest wind turbine manufacturer, and Ørsted, an offshore wind farm developer, are urging governments to accelerate approvals for projects in the wind industry that could face knotty processes and legal hurdles. Navigating the bureaucratic maze of approvals can be so arduous and time-consuming that “turbine designs [become] obsolete by the time permits are granted,” the salmon-colored paper says.

Governments need to step it up: “We need a fundamental review on how we dramatically shorten the consenting process,” Ørsted chief executive Mads Nipper said. Vestas chief executive Henrik Andersen believes that the government is not exerting much effort in solving the energy crisis. “We spend a lot of time listening to why they’re going to apologize for why they didn’t do what they should have done in the past five years. There is a task force required in every government right now that needs to accelerate permitting,” Andersen said.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.