Germany's Lower Energy Imports Bill in 2024: A 12.4 Billion Euro Drop in Coal, Oil, and Gas Spending
Decrease in Germany's spending on coal, oil, and gas amounts to EUR 12.4 billion
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Germany's energy import bill took a dip in 2024, thanks to a 12.4 billion euro decrease compared to 2023. The Energy Balances Association reported this decrease on a recent Tuesday, attributing it to reduced imports of coal, oil, and gas. However, these costs are still notably higher compared to pre-Ukraine conflict times.
Last year's energy import costs soared in 2022 following the cessation of gas supplies from Russia, only to fall back in 2023 and amount to half as much as in 2022, as per AG Energiebilanzen findings.
Besides the relatively high long-term cost level, there was also a surplus in the electricity trade with neighboring countries, resulting in costs of around two billion euros last year.
The factors contributing to this downturn in energy imports costs comprise reduced natural gas consumption, diversification of oil imports, economic and inflationary factors, and increased use of renewables. Germany saw a 14% drop in natural gas consumption in 2024 compared to the 2018-2021 average. Crude oil imports rebounded by 9% in 2024 but relied less on Russia, opting instead for imports from the USA, Norway, Libya, and Kazakhstan. Economic factors and inflation rates also played a role, while the surge in renewable energy sources like solar power is expected to further reduce reliance on imported fuels. Specific data regarding the exact breakdown of these factors' contributions to the 12.4 billion euro decrease is not provided in the search results.
Sources: ntv.de, AFP
[1] Statista[2] Bundesnetzagentur[3] Deutsche Bundesbank[4] International Energy Agency[5] ResearchGate
In light of Germany's reduced energy import bill in 2024, various sectors within the community may want to reevaluate their energy and employment policies, considering the possible impact of the decreased spending on coal, oil, and gas. For instance, the finance sector could investigate opportunities presented by the rising investments in renewable energy, given the anticipated surge in solar power usage. Similarly, the energy industry might need to adjust its employment policy to accommodate the increased demand for renewable energy experts. Furthermore, the employment policy in the industry sector would also need to adapt to the diversification of oil imports, potentially creating new employment opportunities in countries such as the USA, Norway, Libya, and Kazakhstan.
