Germany's 2024 Energy Import Savings: A Drop in Coal, Oil, and Gas Costs by 12.4 Billion Euros
Germany's Coal, Oil, and Gas Spending Dropped by 12.4 Billion Euros
Got some good news for folks in Germany! The cost of energy imports has taken a nosedive in 2024, leaving wallets a bit fatter. According to the Arbeitsgemeinschaft Energiebilanzen, last year's net import bill for coal, oil, and gas clocked in at around 69 billion euros – a whopping 15% or 12.4 billion euros less than the previous year!
But that's still a hefty sum compared to the pre-Ukraine attack days. The increase in energy import costs back in 2022 was a steep one, thanks to the abrupt end of gas supplies from ol' Putin's Russia. However, a sigh of relief could be heard in 2023 as costs took a nosedive and were still half as high as 2022's figures.
Not just that, the surplus in electricity trade with neighboring countries added to expenses, totaling around two billion euros in 2023.
So, what's the deal? Turns out, it's a fancy dance of lower energy consumption, falling wholesale energy prices, and a shift towards more reliable suppliers. Here's a lowdown on the factors that contributed to this energy cost drop:
1. Reduced Energy Consumption:
A. Lower demand: Total energy consumption dipped a tad by 1.3% compared to 2023, while per capita consumption tumbled by 1.6%. Now, that's some gas (and coal, and oil) saved!
B. Natural gas: Compared to the average between 2018 and 2021, Germany's natural gas intake dropped by a whopping 14%.
C. EU: Our continental friends are cutting back on gas consumption, aiming to lessen their dependence on Russian energy and boost energy security. From April 2024 to March 2025, the EU managed to pare back gas consumption by 15.6% compared to the average between April 2017 and March 2022.
2. Falling Energy Prices
A. Energy market prices: A dramatic fall in energy wholesale markets, particularly for natural gas, played a significant role in reducing import costs.
B. Oil and gas market dynamics: Crude oil imports spiked by 9% in 2024 following a sharp decline in 2023. But Germany managed to sneakily dodge expensive Russian energy and cozy up to more stable, and sometimes cheaper, suppliers like the US, Norway, Libya, and Kazakhstan – keeping import costs in check.
kudos to ntv.de and AFP for the scoop!
In the context of Germany's reduced energy import costs, the community and employment policies could potentially be revised to consider the economic benefits and adjust employment rates accordingly. For instance, the drop in energy prices might lead to an increase in industry, finance, and energy sectors, spurring new job opportunities. On the other hand, the energy sector's transition towards more reliable suppliers might present challenges for certain industries that heavily rely on coal, oil, and gas, necessitating discussions on necessary adaptations or support within employment policies.
