Why Europe’s energy respite won’t last

Presented by Natural Allies for a Clean Energy Future: Your guide to the political forces shaping the energy transformation

Jan 05, 2023 View in browser   By Arianna Skibell Presented by Natural Allies for a Clean Energy Future Unseasonably warm weather in much of Europe has left the Patscherkofel winter sport resort near Innsbruck, Austria, without much snow. | Matthias Schrader/AP Photo Europe's unprecedented winter heat wave is a startling reminder of the impacts of the climate emergency. But it's also offering the continent some relief from a punishing energy crunch that had sent heating bills soaring. The easing energy prices also offer the Biden administration a break from European frustration with the high costs of fuel imported from the U.S. As Chelsea Harvey and Sara Schonhardt write, weather stations across Europe are recording their highest January temperatures of all time, with numbers close to 70 degrees Fahrenheit. Some areas are hotter than their July averages. The hardest-hit regions stretch from France to Germany, Belgium and the Netherlands. Records also shattered in Luxembourg, Poland and Belarus. "It's very nice to be out in the sun, to be eating ice cream in December, but people really realize now that this is not normal," Anne-Sophie Corbeau, an expert on natural gas at Columbia University's Center on Global Energy Policy, told Chelsea and Sara. Still, the lower power demand has allowed countries to refill their natural gas storage facilities, which may mean fewer gas imports over the summer. That could relieve pressure on a market still struggling to replace Russian gas imports following the Kremlin's invasion of Ukraine. It could also ease concerns about supply shortages for next winter. Taking its toll: But the extreme heat is also disrupting parts of the economy. For example, ski resorts in the Alps are running out of snow. Some had to close before the season started. Europe's energy troubles are also far from over. Higher temperatures, combined with alternative fuels and cuts to consumption, may have helped drive down demand and prices for natural gas, but the market could change as winter progresses. If China's economy heats up or if Japan experiences a cold snap, for example, increased competition over natural gas might draw fuel away from Europe, creating another shortfall. And the climate crisis means a continued risk of havoc such as brutally hot summers, which — as the world learned last year — strain the grid and endanger human health.   It's Thursday — thank you for tuning in to POLITICO's Power Switch. I'm your host, Arianna Skibell. Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to askibell@eenews.net. Listen to today's POLITICO Energy podcast Today in POLITICO Energy's podcast: Doug Palmer breaks down how the Biden administration is showing some flexibility in how it plans to implement electric vehicle tax credits and what critics have to say about the change. tech land Lisa Su, AMD chair and CEO, speaks at the CES technology conference. | Youtube screenshot The Consumer Technology Association's annual CES conference is an opportunity for companies to showcase their latest technological innovations — anything and everything from pet gadgets and 3D-printed skin care supplements to air-scrubbing houseplants and smart baby bottles. This year's event in Las Vegas, however, is also infused with a hefty dose of clean energy technology, says POLITICO reporter John Hendel from Nevada. Sessions are focused on electric vehicles, home solar energy storage and greening cryptomining, and Energy Secretary Jennifer Granholm is set to deliver a speech tomorrow on powering the clean energy future. Energy efficiency is also a major topic. Lisa Su, the CEO of Advanced Micro Devices, a multinational semiconductor company based in California, said the group's newest data center processors could save 52 billion kilowatt-hours of electricity and avoid 26 million tons of planet-warming emissions.   A message from Natural Allies for a Clean Energy Future: As the demand for low-carbon energy grows, U.S. natural gas, partnered with renewable energy, will help reach global climate goals faster, without sacrificing reliability or affordability. Learn how natural gas is accelerating our clean energy future at www.naturalalliesforcleanenergy.org.   Power Centers Claudine Hellmuth/POLITICO (illustration); Freepik (stock ticker, money and oil barrels); Joe Raedle/Getty Images (pump jack) What's next for oil and gas? After posting record profits in 2022, oil and gas companies say they're preparing to ramp up investments in clean energy and new technology this year, write Mike Lee and Carlos Anchondo. Exxon Mobil said it will spend $3.4 billion annually on alternative energy over the next five years. Chevron — the nation's second-largest oil company — said it will more than double its clean energy spending from last year to $2 billion in 2023. Energy as a House unifier The turmoil engulfing House Republicans this week is a bad sign for the party's legislative agenda, but some top lawmakers believe energy and environmental issues could unify the GOP, write Nick Sobczyk, Emma Dumain and Jeremy Dillon. After all, nearly all House Republicans want to roll back regulations and increase energy production on federal lands. Taking the reins The Senate Budget Committee is looking to hire staffers with experience investigating fossil fuel influence campaigns, a sign of how incoming Chair Sheldon Whitehouse could use the gavel to go after the industry, writes Nick Sobczyk. A longtime climate hawk and enemy of the fossil fuel industry, Whitehouse has said he wants to continue the investigation of oil majors started in the House during the last Congress. in other news Electric future: Here are four big things to expect in clean energy in 2023. Meet the climate quitters: An ever-growing roster of people are leaving their jobs to pursue careers combating climate change.   A message from Natural Allies for a Clean Energy Future:   Subscriber Zone A showcase of some of our best subscriber content. The Duette solar project is pictured in Florida. | Duke Energy Corp. An electricity trading program in the Southeast got bigger this week as four utility companies in Florida joined the new initiative. Michigan Democratic Sen. Debbie Stabenow will not run for reelection, opening up a battleground seat in 2024 as well as creating a vacancy in party leadership. Insurance giant Chubb announced the creation of an underwriting and advisory division that will focus on the climate-related aspects of its business. That's it for today, folks! Thanks for reading.   A message from Natural Allies for a Clean Energy Future: Lowering emissions is a promise that we must keep – for the next generation and beyond. Natural gas, partnered with renewable energy, will help reach global climate goals faster, without sacrificing reliability or affordability. As demand for clean energy grows, expanding the country's natural gas infrastructure will help meet today's needs, while laying the groundwork to transport zero-carbon fuels, like hydrogen, tomorrow. Learn how natural gas is accelerating our clean energy future at www.naturalalliesforcleanenergy.org.     Follow us on Twitter Arianna Skibell @ariannaskibell   Follow us

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