Topics Europe | power crisis | Ukraine

Bloomberg News  Last Updated at August 26, 2022 14:37 IST

Europeans are taking colder showers, offices are turning down thermostats and stores are dimming lights to avoid blackouts and freezing homes this winter in the fallout from Russia’s war in Ukraine.

As the Kremlin slashes gas deliveries and power-plant outages intensify a supply squeeze, Europe has little alternative but to curtail demand. Measures so far have been uneven, but the urgency is growing as wholesale prices continue to surge.

While some countries like Germany, where nearly half the homes rely on gas for heating, are more exposed than others, the European Union is seeking to band together. The bloc’s member states aim to cut gas use by 15 per cent through this winter if Russia — which historically covered about 40 per cent of EU demand for the fuel — turns off the tap.

Here’s an overview of some of the key initiatives to curb energy usage:

The Brandenburg Gate monument at night in Berlin. Photographer: Krisztian Bocsi/Bloomberg

Chancellor Olaf Scholz’s cabinet approved a raft of measures this week to help cut gas consumption by a fifth this fall and winter. The national measures, which add to steps taken by municipalities across Germany such as cutting off warm water in public pools, are aimed at reducing gas use by about 2 per cent and include:

President Emmanuel Macron has set a target to reduce energy consumption in 2024 by 10 per cent compared with 2019’s level. His administration last month set up a series of working groups focused on government operations, real estate, tech and telecoms, and shopping centers and other public sites. The goal is to have specific proposals by the end of September. While there’s been few concrete steps so far, there have been a smattering of initiatives:

A Carrefour supermarket, in Paris. Photographer: Nathan Laine/Bloomberg

A fresh plan to reduce Italy’s consumption could be approved at a cabinet meeting as early as next week. Energy prices have become a key issue of the campaign ahead of the snap Sept. 25 election to replace Prime Minister Mario Draghi. The center-left is proposing price controls for electricity, a move criticized by right-wing frontrunner Giorgia Meloni, who instead wants an EU-wide initiative.

According to Italian media, the country’s savings plan could include:

In a rare step to legally mandate lower consumption, Spanish lawmakers on Thursday passed rules put in place by decree in early August. The steps include:

Air conditioning units on residential building during a heat wave in Seville.

Photographer: Marcelo del Pozo/Bloomberg

In line with the EU target, Switzerland will ask, but not compel, households and businesses to cut gas use by 15 per cent from October to March by taking steps like lowering indoor heating temperatures. The government is setting the same target for its own administration to set a “good example.”

If the voluntary approach doesn’t work, the government is consulting on compulsory measures including forcing gas-burning industrial plants to switch to oil and supply reductions for the public sector. For now, Switzerland is saying private households will be exempt from any compulsory rationing.

Prime Minister Sanna Marin’s government announced a campaign challenging consumers and households, as well as companies and organizations to reduce consumption, targeting 75 per cent of its citizens to take part. The joint campaign by the Economy Ministry and other organizations was announced Thursday and has a long-term goal to permanently lower energy use. The campaign will formally kick off in October and proposes:

Commuters at Pasila Railway station at Helsinki. Photographer: Roni Rekomaa/Bloomberg

Prime Minister Magdalena Andersson’s government hopes to use about $5.8 billion in so-called bottleneck revenue to compensate households and companies, and the Swedish Energy Agency has presented various tips to help cut energy use in domestic homes, including:

Residential apartment in the Hammarby Sjostad district of Stockholm. Photographer: Mikael Sjoberg/Bloomberg

Prime Minister Mette Frederiksen’s administration hasn’t set concrete reduction targets beyond the EU goal of 15 per cent cut in gas use, which it has already reached. Authorities have given a number of recommendations for Danes to follow including:

The Dutch government isn’t implementing measures specifically for this winter, and the state-owned gas company has said the country will have enough supplies for this winter. But the “Save Energy Now!” campaign encourages people to make their homes more efficient by using heat pumps, ventilation with a heat-recovery function, solar water heating and better insulation for roofs, floors and windows.

Vienna has pledged to save some costs by delaying the start of winter lighting for Christmas markets, while ski centers may also reduce offerings by blasting less artificial snow and limiting night-time operations. The national government has yet to impose mandatory measures with the country on track to fill one of the continent's largest gas storage networks to 80 per cent of capacity.

Prime Minister Kyriakos Mitsotakis’s government announced measures in June to curb public-sector energy use by 10 per cent in the near future and by 30 per cent by the end of the decade. Authorities will offer financial incentives to organizations that save energy and will also create a digital system for monitoring consumption. Measures include:

Ireland is exempt from the EU target because it gets most of its gas from the UK, but the country is still encouraging people to reduce their power use this winter via the “Reduce Your Use” campaign.

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