The world is heading for an 'expensive winter'

This round of " electricity shortage " is not limited to China. In fact, the world is ushering in an "expensive winter". In recent years, most major economies have been promoting energy transformation. But pains follow when progress is made.

Coal and natural gas prices in Europe and the United States have skyrocketed, and electricity prices have soared. Wind data shows that in the past year, the international thermal coal price has increased several times. At the same time, natural gas prices in Europe and the United States are constantly setting new record highs. As of September 24, the price of natural gas futures in Europe has soared to around £200 per MWh from £8 in May 2020, an 25 times increase.

At the same time, the stability of energy structure in Europe and the United States is facing challenges. Under the global low-carbon action, Europe and the United States have continuously promoted the transformation of energy structure in recent years, and thermal power has been gradually abandoned by Europe for environmental protection. Affected by extreme weather such as widespread drought this year, wind and hydroelectric power generation plummeted during the year.

With the soaring prices of coal and natural gas, coupled with insufficient wind and hydropower generation, electricity prices in Europe and the United States have entered the fast track of rising. According to data from the U.S. Energy Information Administration (EIA), as of July alone, electricity prices in Italy, Spain, Germany, and France have risen sharply by 166%, 167%, 170%, and 134%, respectively, compared with a year ago.

The world is heading for an 'expensive winter'