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.