Russia’s war on Ukraine fuels energy crisis [What Think Tanks are thinking]

BRIEFING What Think Tanks are Thinking 14 September 2022 Russia’s war on Ukraine fuels energy crisis The European Union is debating how to respond to the energy crisis resulting from Russia’s war on Ukraine. Energy prices are surging in the EU and elsewhere, as Russia curtails fossil fuel exports with the aim of pressing the Union to reduce its support for Ukraine. Gas prices are now some ten times their average over the last decade. Individual EU governments are offering their citizens and businesses financial relief, but they face the dilemma of balancing this aid with allowing energy prices to grow in order to discourage consumption. Some countries are reopening polluting coalfired power plants and delaying closures of nuclear energy generators. The European Commission proposed, in September, EU-wide measures against Russia’s energy market manipulation. They would force firms and individuals to use less energy in certain circumstances, and envisage windfall charges on some power generators, which would be returned to consumers. It offers liquidity aid for energy firms and proposes a cap on the price of Russian gas. EU energy ministers discussed the ideas on 9 September, but reached no firm conclusions. This note gathers links to the recent publications and commentaries from many international think tanks on the energy market. Earlier analyses of high energy prices can be found in a previous edition of the ‘What Think Tanks are Thinking’ series. A grand bargain...