Energy dependency ( and competitiveness) paragraph P 62.:
True, energy costs in Europe remain higher than those of its major competitors. During the energy crisis, the EU, as other regions relying on imported fossil gas (UK, Japan, South Korea) has witnessed a trend of increased price differentials with other parts of the world. Gas prices were 3 to 6 times higher than those in the U.S, compared to 2-3 times historically and are still significantly higher today. EU electricity industrial retail prices are close to 2 times the US prices and are becoming progressively higher than in China. Such a situation will persist until the marginal price is predominantly determined by renewable and low-carbon electricity sources rather than gas. The continent’s limited self-sufficiency in energy also heightens its vulnerability to sudden price shocks. In 2021, the EU’s dependency on energy imports was high: 91.7% for oil, 83.4% for gas, and 37.5% for solid fossil fuels, contributing to an overall energy dependency rate of approximately 55.5%. In 2022 alone, Europe’s bill for importing fossil fuels amounted to €640 billion, approximately 4.1% of its GDP. In 2023, even with lower prices, it remained close to 2.4% of the EU’s GDP.
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