How does the conflict between Russia and Ukraine affect light?
With the current state of conflict between Russia and Ukraine, energy is one of the issues of concern over gas supplies and rising electricity.
In the early morning of February 24, 2022, Russia began its invasion of Ukraine through a tough Military operation, which consisted of bombing the most important cities in the neighboring country. The entire world has been attentive to Russian movements for months, as these can seriously affect the socio-economic stability of many countries.
The energy conflict
One of the most talked about topics is Rising energy prices, and not surprising, considering that Russia is the main exporter of gas among European countries. With the war on, many are wondering if Russia will cut off the supply, an action that will force Europe to look for alternative sources.
This paradigm, sooner or later, will cause gas prices to become more expensive due to the lack of supply, at least in Europe, an aspect that directly influences the price of electricity by pricing mechanism, which correlates all energies. The mechanism consists of holding a daily energy auction, where gas is the most expensive element and the one that defines the price per kilowatt hour, so if there is an increase in the price of gas, electricity, together with other energies, will also see their prices increase.
Will Spain be affected?
Spain has been working for some time to obtain sufficient gas supply in the face of the threat of armed confrontation between Russia and Ukraine. For this reason, in recent months, the importation of gas from the United States by sea has increased greatly, with the objective of not suffering a shortage.
However, for days now, the prices of gas, electricity and gasoline have already increased. A rise that will continue to rise with the recent outbreak, and that leaves a picture of economic uncertainty and a tense climate, where energy will be a hot front.