Several factors play a role in the energy price crisis in Europe. Among the main ones, the growing tensions between Russia and Ukraine, supply constraints and increased demand.
In the Netherlands, energy-intensive industries are having a hard time. Since the beginning of October an aluminum factory has not produced any new metal, which puts jobs at risk, as one employee explains: “The environment is a bit depressing at the moment, because 120 of the colleagues will be fired. And in Actually, we are still hopeful here at the plant that we can keep working. “
Electricity costs usually represent up to 40% of total aluminum production. Analysts say that gas prices are the main cause of the increase in what must be paid for energy in Europe, while the cost of permits in the European carbon market has contributed to a fifth of the increase.
“First the prices were very high. In October due to the recovery of the economy and the lifting of closures and the increase in demand for gas. But now we see that it is mainly due to geopolitical tensions with Russia, because most of the gas we receive in Europe comes from Russia, “explains Machiel Mulder, professor of energy markets.
Dutch industry has been particularly hard hit as, unlike Germany and France, they have no program to compensate energy-intensive industries for the costs of rising European CO2 prices