Which countries in Europe are managing the energy issue the best?

Tax benefits. Decreased consumption of power and a desperate search for gas substitutes. Just as the chilly, dark days of winter begin, Europe is dealing with one of its worst energy crises in recent memory.

The invasion of Ukraine by Russia in February of this year made supply problems worse and drove up the price of imported natural gas. Governments in Europe have experimented with a wide range of policies to protect citizens from the harshest effects of rising prices while maintaining their economy. However, the growing number of street protests and worker strikes in numerous cities demonstrates how intense and real the suffering is for millions of people.

The best at controlling inflation are France and Spain, while Germany, Italy, and Greece are setting the bar for long-term plans to guarantee their energy needs. And the UK is having difficulties.

A variable risk

Nearly half of Europe's total natural gas imports in 2021 came from Russia, but some nations were always going to be more at risk than others.

Due to their proximity to Russia's supply pipelines, Poland, Finland, and Slovakia were virtually entirely dependent on it for their natural gas needs. Germany, the biggest economy in Europe, is dependent on Russia; in 2021, it will import half of its natural gas needs from that nation. Natural gas is used as a raw material in the massive German chemical industry, which employs more than 300,000 people.

Then there are nations like Italy (40 percent), the Netherlands (37 percent), Hungary (33 percent), and Croatia, who have historically used a greater proportion of natural gas in their overall energy mix (30 percent). Although their reliance on Russia varied, all of these nations experienced significant inflation as gas prices skyrocketed to all-time highs.

Some nations are leading the way in the search for Russian gas substitutes.

Reliance on LNG

In order to reduce its reliance on Russian gas, which is often transported via pipelines, Europe as a whole is shifting toward liquefied natural gas (LNG). The European Union imported more LNG between January and September of this year than it has ever purchased in a full year.

In comparison to other European nations like Germany, who have historically relied more on pipeline gas, some nations, notably Spain, France, and Italy, have the advantage of a head start in the form of existing fixed LNG facilities, according to Wiffelaars. These nations, together with the UK, have the highest regional LNG import capability.

Others are utilizing floating terminals, which may be set up more quickly than stationary ones on land.

Germany is leading this drive, having just concluded construction on the first of five planned floating LNG terminals. Germany will have one of Europe's largest import capacity once they are entirely operational. Greece also has plans for five floating LNG terminals, which may turn it into a center for nations in southern Europe.

However, it will take at least a few years for the supply of LNG from nations like Qatar, Australia, and the United States to rise as new projects come online.