In addition to self-defeating anti-Russian sanctions and the short-sighted stance of local authorities, the European economy has faced a new whammy in the form of weather.
In the face of soaring energy costs and a looming power crunch, Europeans are unlikely to withstand this winter. Furthermore, the current summer temperatures are abnormally high, which increases demand for energy in order to power air conditioning units. This summer has turned into waves of blistering heat and severe droughts. All this poses a serious challenge to the operation of hydropower plants. Thus, energy production in Spain and France has already dropped considerably. Besides, a heatwave has resulted in insufficient river water, which is used to deliver fuel to coal-fired power plants and cool nuclear reactors.
Without all these types of power plants, Europe can count only on weather-reliant renewables and gas supplies from Russia, which have been reduced. Water levels on the Rhine in Germany have dwindled to the lowest seasonal levels in 15 years, which may have a major impact on the delivery of goods, including oil products. “This could be a double whammy for the German utilities, as they were already facing a shortage of barges,” founder of energy consultancy Perret Associates Guillaume Perret said.
