Russian officials have repeatedly highlighted risks of forcing energy transition at the expense of traditional energy markets, which could lead to underinvestment and shortages of crude and gas in the future.
Novak wrote in his column for Energy Policy magazine:
- Artificial rejection of traditional energy resources, which a number of countries are trying to impose today, will inevitably lead to even greater energy crises than the current one, and then economic and, possibly, political crises
Russia's own bid to become carbon neutral by 2060 is expected to require major shifts in its energy strategy from oil & gas to increases in nuclear and hydrogen production.
- Russia sees the decision of the European Commission to classify nuclear energy and gas as clean energy sources as important and expects it to come into force in the next 6 months
- Only the balance of energy sources can guarantee the stability of energy markets in the future
Novak also called for greater use of long-term supply contracts to mitigate market volatility.
Although European gas prices have cooled since record levels seen in December, they remain high on low storage levels and concerns over Russian supplies.
S&P Global Platts assessed the benchmark Dutch TTF day-ahead price at Eur 68.08/MWh Feb. 15, up more than 4-fold on the year.
- The early launch of the Nord Stream 2 pipeline, which is yet to obtain certification from the German regulator, can help stabilize the gas market in Europe
- Using gas from Nord Stream 2 for electricity generation instead of coal will allow the EU to reduce total CO2 emissions by 14%, which corresponds to the annual emissions of about 30 million average cars