Outlook 2024: Germany rethinks its energy strategy amid European energy crisis

The consequences of Russia’s invasion of Ukraine have been particularly significant for Germany

European energy security and energy affordability has been thrust into sharp focus by the Russian invasion of Ukraine and the resulting loss of critical gas supplies that Eastern and Central European countries had come to rely upon. This has also come at a time when Europe was taking steps to respond to the challenges of climate change by making its energy supplies more sustainable by increasing the build-out of renewables, which have not yet been able to replace the need for hydrocarbons. Since the crisis began, supplies of Russian gas, which made up 45% of all gas imports in Europe, have dwindled by as much as 80% (according to the IMF). This sudden negative shift set off a domino effect,