The energy crisis shows no sign of abating and we run for cover as we can. Surprisingly, two countries with no gas or coal fields could be the key to getting out of Moscow’s current dependence on supplies.
We are talking about Spain and Portugal which boast a system based on imports and alternatives such as solar energy. Portugal has no coal mines, oil wells or gas fields. In addition, its impressive hydroelectric power generation was paralyzed this year by drought. In contrast, however, Portugal’s long disconnection from the rest of the European energy grid meant that the country was defined as a‘”Energy island”.
Today with Russia cutting off natural gas supplies to Europe, Portugal suddenly found itself playing a critical role in managing the looming European energy crisis.
Renewables and LNG, the alternative route of the Iberian Peninsula
For years, the Iberian Peninsula has been cut off from the pipeline network and the huge supplies of cheap Russian gas that power much of Europe. Like this Portugal and Spain over the years have decided to invest heavily in renewable energy sources such as wind, solar and hydroelectric, and to create an elaborate system of importing gas from North and West Africa, the United States and other countriesthe. Now access to these alternative energy sources has taken on a new meaning. The changed circumstances are shifting the balance of power among the 27 members of the European Union, creating opportunities and political tensions as the bloc seeks to counter Russia’s energy blackmail, manage the transition to renewable energy and determine infrastructure investments. .
As Brussels tries to figure out how to manage the crisis, the possibility of channeling more gas to Europe via Portugal and Spain is gaining attention. Together, Spain and Portugal account for one third of Europe’s liquefied natural gas treatment capacity. Spain has the largest number of terminals and the largest, although Portugal has the most strategic location.
Portugal and Spain were among the first European countries to build the type of treatment terminals needed to accommodate ships of natural gas in liquefied form and to convert it back into steam to be conveyed to homes and businesses. This imported liquefied natural gas, or LNG, was more expensive than much of Europe imported from Russia. But now that Germany, Italy, Finland and other European nations are frantically trying to replace Russian gas with substitute products shipped by sea from the United States, North Africa and the Middle East, this disadvantage has become an advantage.