The Bank of Spain calculates that given the increase in energy prices and the measures of the savings plan, the demand for gas and electricity due to the freezing temperatures will absorb part of this extreme consumption
In the midst of a rainy and cold storm sweeping across half of Europe, the Bank of Spain has laid out the challenge facing the Spanish energy system in the worst part of the winter yet to come: gas extraction and consumption between homes and businesses can between the end of this year and the beginning of 2023 will shoot up by as much as 32% compared to the average records of recent years.
However, taking into account the recent changes in consumption patterns (due to the rise in energy prices and the impact of the austerity plan launched by the government), if the 2022-2023 winter were as cold as the 2004-2005 winter, natural gas consumption in our country could increase by about 25% compared to last year, compared to the 32% initially calculated without taking into account the current context.
In fact, if the same temperatures were measured as last winter, and taking into account the sensitivity of the population to rising prices and the energy savings plan, gas consumption could fall by 10% compared to last year.
The institution indicates that the possible impact on the energy consumption decisions of households and SMEs that the Air Conditioning Energy Saving and Management Shock Plan approved in August and the sharp increase in energy prices that will be observed throughout 2022 should also be taken into account. For much of the months of October and November of this year, Spain experienced a marked decline in demand for natural gas from households and SMEs that cannot be explained by the factors included in that model analysed.
The banking regulator’s calculations explain that during the coldest months of the year, the consumption of natural gas is “more sensitive than that of electricity to temperature changes”. That is, a decrease in temperature causes a greater increase in the consumption of natural gas than of electricity.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
