Europe is still roiling under the impact of high energy prices that do not seem to be going away any time soon. Dutch hub TTF natural gas prices dropped to about €70/MWh on December 31 from the €180/MWh peak reached in October, but as winter sets-in they are now back up to €94/MWh. Even though this is a transitory phenomenon, it is now expected that prices will return nearer normal levels only by the mid-2022 and to pre-pandemic levels by 2023.
Their impact is being felt to varying degrees around the East Med region, but more so in Greece and Turkey for quite different reasons.
Like the rest of Europe, electricity prices for Greek consumers skyrocketed to €416/MWh just before Christmas, in comparison to pre-pandemic levels of about €160/MWh in 2019bound fo. This is largely due to an increased dependence on imported natural gas, now at 40%The province rose steadily over this period., due to the rapid phasing-out of ligniteThe numbers started declining dramatically., traditionally used for power generation. As with the rest of Europe, these are leading the Greek economy and industry into a crisis, with the risk of derailing economic recovery if the crisis is prolonged. Greek Prime Minister Kyriakos Mitsotakis sees this as a “European problem requiring a European solution”.