From Ukraine to the Persian Gulf: How to deal with an energy crisis four years later?

Madrid"Since Saturday, I've had the feeling that we're in a déjà vuThe reflection was made by the Director-General for Energy of the European Commission, Mechthild Wörsdörfer, during a speech at the Biomethane Connect Europe congress held this week in Madrid. Iran and its ramifications in the Persian Gulf – also causing the blockade of the Strait of Hormuz – have once again raised alarms regarding gas and oil supplies, directly affecting families and businesses. "We return to the situation in Iran, where the price of gas has climbed by 50% – the Dutch TTF is approaching 50 euros/MWh – while the price of Brent crude, the benchmark for Europe, has risen by more than 30%, reaching around 90 dollars (On Friday it already exceeded $90 at timesFour years ago, the cost skyrocketed even further: gas reached its all-time high – €345/MWh – while crude oil surpassed $120 a barrel. The difference is clear – although what might happen in the Middle East is still uncertain – and that's why some voices in the energy sector point out that the current scenario is not the same. They also recall that dependence on Russia was much greater. In fact, in the case of Spain, the ships that supplied gas to the country in 2025 and that had passed through the Strait of Hormuz because they came from the now conflict zone (specifically, from Qatar) accounted for only 1.7% of imported gas. But the situation is also different because Europe and its member states are in a "better position than when the war broke out in Ukraine," stated the European Director of Energy. The reason is the lessons learned then, which led to new energy policies. Therefore, despite constant monitoring by the European Commission, supply is currently "guaranteed," Wörsdörfer stated. Specifically, the European plan known as [name of plan] emerged from the crisis four years ago. Repower UE and whose central aim was to gradually phase out fossil fuels of Russian origin (oil and gas) and diversify sourcesFor example, in 2022, Russian natural gas imported into Europe via pipeline accounted for 40% of total fuel consumption, but by 2025 this figure had fallen to 6%, according to European Commission estimates. During this period, imports of liquefied natural gas (LNG) from the United States have tripled, making it the second-largest supplier after Norway. Spain has also risen to second place in the LNG market. Across the continent, Algeria, the United Kingdom, and Azerbaijan have also joined the list of major LNG importers.

But beyond diversification, there was also the objective of ensuring security of supply and reducing dependence on foreign energy by promoting green energy. This was coupled with a reform of the European electricity market to prevent volatility, as well as price caps. In this respect, the Spanish government is also going reform the regulated electricity tariff (PVPC) to insulate it from the volatility of wholesale market prices, where the price of electricity fluctuates hourly, every day of the year, based on supply and demand. These customers are the first to notice if gas prices skyrocket.

More gas reserves

Regarding the guarantee of supply, especially during the colder months, the challenge was to keep gas storage facilities full. The fear in the spring of 2022 was that winter would arrive without sufficient reserves, so member states were set a target of 80% stockpiling. Furthermore, efforts began to focus on installing regasification plants, infrastructure that allows liquefied natural gas (LNG) to be converted into a gaseous state and then transported through pipelines. This was the case in Italy and Germany, with floating regasification plants at sea, and even in Spain, which was forced to reopen the El Musel regasification plant (Asturias). In this case, Spain had an advantage because it has seven regasification plants, and therefore also re-exports regasified LNG to European partners. This aspect also raised concerns because it meant investing again in facilities that could become obsolete in the future.

An uneven renewable energy bet

The other major area Europe is focusing on is harnessing natural resources (sun, wind, and water) to produce renewable energy and reduce its dependence on external energy sources to meet electricity demand, although this dependence remains high. In Spain, for example, in 2024, external dependence was 68%, according to data from the Ministry for Ecological Transition. However, the share of green energy in the electricity mix has grown only gradually. But this European commitment is uneven. The government of Pedro Sánchez, for example, is firmly committed to the ecological transition, while the French government continues to rely on nuclear power as the cornerstone of its energy policy, and Italy refuses to abandon gas consumption. Nevertheless, gas remains a significant energy source in Europe and Spain. "We have gas for a long time," stated Francisco Reynés, president of Naturgy, a few weeks ago at an energy forum organized by the IESE Business School. Four years later, the European Director of Energy has also acknowledged that, despite the lessons learned, it is necessary to "accelerate" if the established goals are to be achieved.