Amid protests, Europe limited in curbing high energy prices

Press quote (AP)
23 March 2022

“The main problem is that these measures [energy tax cuts] to keep energy prices low will also suppress incentives for energy efficiency, for investment in green energy generation, and for electrifying sectors that currently rely on fossil fuels — so they could make the long-term pain of adjustment harder,” Cornago said.

To bring down [energy] prices long term, there are two options, Cornago said: investment in renewables and measures like better insulation for homes or electrifying industries that rely on natural gas.

In the nearer future, an EU proposal for a common strategic gas reserve could work to improve security of supply by next winter.

“But realistically, refilling reserves at a time of tight gas markets is also going to result in higher prices for consumers generally,” Cornago said.