The energy crisis that is hitting the main world economies does not subside: new alarm signals are coming from India to Europe. Gas, coal and even water are in short supply: the situation.
The energy crisis continues to spread around the world.
L ‘ India is the latest country to address the lack of resources that threatens to undermine the recovery by the pandemic. Indian authorities have warned that power plants are dangerously short of coal . As in China, after all.
Meanwhile, Northern Europe is added to the list of world regions with serious shortages: lacking is water, a precious engine of hydroelectricity . The shortage aggravates the already dramatic European budget, struggling with unobtainable gas and skyrocketing.
The situation of the energy crisis : where we are and why we still need to worry.
India has no coal: reasons and consequences
India’s energy ministry warned that Asia’s third largest economy’s 135 thermoelectric power plants had an average of just four days of coal stocks as of early October, down from their August stocks.
Electricity shortages have already begun to hit the economy in neighboring China , where the manufacturing sector showed suffering last month. Beijing has ordered state-owned energy companies to guarantee fossil fuel supplies at all costs to avoid winter shortages, helping to raise prices for other large importers, including India.
Indian energy producers have reduced coal imports in recent months as international prices have risen in the wake of robust global demand from Europe and China.
Prime Minister Narendra Modi’s government has also promoted a policy of economic self-sufficiency as a guiding principle for its recovery. However, domestic coal supplies – cheaper and nearly 80 percent from the massive and inefficient state-owned company Coal India Ltd – have failed to keep pace with rising domestic demand.
In addition, heavy September rains in the mining areas affected both coal production and delivery. In addition, fuel from Indonesia , a major supplier to India, went from $ 60 / ton in March to $ 200 / ton in September, discouraging imports.
In this context, the prospect for Inda is of impending large-scale power outages, higher consumer electricity prices and a blow to the profits of power generators, in an economy where coal-fired power plants now represent. around 66% of energy production, up from around 62% in 2019.
Northern Europe, there is no water: this is not good news for the energy crisis
To the shortage of natural gas and coal, with consequent skyrocketing prices, the shortage of water in Northern Europe is added to worry the region.
The Nordic area of the EU is facing an energy crisis as water reservoirs emptied due to low rainfall and warmer weather hinder the generation of hydroelectricity .
The hydro levels Norwegians are at their lowest for over 10 years for this time of year. While some rain has come in the last few days, the situation in southwestern Norway has been so bad that network operator Statnett has issued a warning: we are in the rationing zone.
It should be noted that this part of the country has the largest reservoir capacity and connections with Germany and Denmark, as well as a new cable for distribution in Great Britain.
Norwegian water availability data is therefore important for the European energy market : there is not enough water to export energy to both the continent and the UK. Britain and Ireland will likely be the hardest hit by the global gas shortage.
Meanwhile, European natural gas has risen to the record threshold of 100 euros (116 dollars) per megawatt hour on Friday 1 October and on Monday morning it was traded at around 95 euros.