OIES Podcast Series: Impact of Russia-Ukraine War on Energy Markets Series – 18

In this latest OIES podcast James Henderson talks with Mike Fulwood, Jack Sharples and David Robinson about the latest news on the flow of Russian gas to Europe and the increasing moves by the EU and national governments to prepare for the winter months and reduce the energy price impact on consumers. The first topic is the closure of the Nord Stream 1 pipeline and its impact on the availability of gas in Europe. The discussion then moves to the level of gas storage in Europe and the likelihood that other pipelines bringing Russian gas through Ukraine and Turkey might also be shut down at some point. The question of physical gas availability in the winter of 2022/23 is then reviewed, and we also look at moves by the EU to limit the level of gas price increases and volatility. The UK’s plans to cap energy prices for residential and industrial customers are then discussed, before we move onto the electricity sector and analyse plans to break the link between the gas and electricity markets in order to avoid high gas prices setting a high marginal price for electricity. We look at the example of Spain and Portugal and also discuss how the EU may address the issue, before reviewing what longer term plans for the electricity market might look like and how they might be impacted by short-term responses to the current crisis.