High Oil and Gas Prices Fuel Inflation: Vattenfall Calls for Faster Electrification in Germany
Berlin – Vattenfall has warned of the economic risks of Germany's and Europe's heavy reliance on fossil energy imports, following the recent rise in oil and gas prices. The energy company is calling for faster expansion of renewable energy, power grids and storage, as well as greater electrification of heating, transport and industry.
Fossil Energy Imports: Vattenfall Warns of Price and Inflation Risks
According to Vattenfall, the European benchmark price for natural gas has risen by around one-fifth since late August and at times reached its highest level since early 2023. International oil prices have also climbed markedly. Vattenfall noted that higher energy prices affect households directly through heating costs and petrol and diesel prices, and can also increase general price pressure via production, transport and services.
"The current development shows once again how dependent Germany and Europe remain on international energy and commodity markets," said Robert Zurawski, head of Vattenfall in Germany. "As long as we have to import fossil fuels, we also import geopolitical risks and their impact on prices."
The company also stressed that the current situation is not comparable to the 2022 energy crisis. Europe now has a more diversified gas supply, additional LNG capacity and higher renewable power generation. However, the underlying import dependence persists. According to Eurostat, Germany covered 67 percent of its energy needs through net imports in 2024, above the EU average of 57 percent.
Vattenfall Backs Electrification, Wind Energy and Storage
As a structural response to fossil import dependence, Vattenfall advocates greater electrification of heating, transport and industry. The company points out that wind and solar energy incur no fuel costs. Additional heat pumps, electric vehicles and electrified industrial processes could therefore reduce demand for fossil fuels and, with it, dependence on international oil and gas markets.
Vattenfall presents a model calculation: if Germany's fossil energy demand fell by a quarter, around EUR 20 billion a year in fossil import spending could be avoided, assuming prices remain unchanged, according to the company's calculations.
Vattenfall links its call for stronger electrification to its own investment strategy. According to the company, it is investing in, among other things, offshore wind energy, battery storage and pumped-storage power plants, as well as solutions for decarbonising heating and transport. Among its largest current projects is the Nordlicht Offshore Wind Farm. Once fully commissioned, the project is expected to generate around 6 TWh (6 billion kWh) of electricity annually.
EU Aims to Reduce Fossil Energy Import Dependence and Cut Import Costs
The import dependence highlighted by Vattenfall is also a central element of European energy policy. According to the European Commission, the EU spent around EUR 340 billion on imports of fossil energy in 2025. By accelerating the expansion of clean energy, the EU aims not only to make its energy supply more resilient but also to reduce spending on fossil energy imports.
Dependence remains high: in 2024, the EU covered 57 percent of its energy needs through net imports. Oil and oil products and natural gas together accounted for 91 percent of energy imports. With AccelerateEU, the European Commission aims to accelerate investment in renewable and other clean energy, grids and storage, thereby reducing dependence on international energy markets.
Vattenfall's call for faster expansion of renewable energy and greater electrification fits into this energy policy trend. If oil and gas consumption falls, CO2 emissions as well as spending on fossil energy imports can decline. The current price trend thus brings the link between fossil import dependence, energy costs and electrification back into focus.
Source: IWR Online, 07 Oct 2026