Europe’s Energy Crunch

Energy Crisis Index methodology:

The Bloomberg Energy Crisis Index measures the level of stress on energy systems across a selection of major European economies using five parameters: gas storage, percentage full (data sourced from Gas Infrastructure Europe); power load, in GW (from ENTSO-E); gas and power prices per MWh for the day ahead (from relevant exchanges or brokers); and temperature forecast (based on Weather Company data using the ECMWF model.) On the graphic, gas and power prices in local currencies are displayed in euros.

For each parameter, data is adjusted for seasonal variation and a z-score is calculated for every observation for the last four years (one-year in the case of power and gas prices). For the most recent z-score, the percentile score is calculated.

For gas storage and weather, the 100th percentile (0% of z-scores in the last two years are higher) is the “best” result, so the number of points equals 100 minus the percentile. For the power load and the day-ahead gas and power prices, the 0th percentile (100% of z-scores in the last two years are lower) is the “best” result, so the number of points equals the percentile. The average of all variables gives the overall score for each country, with 0 representing the lowest stress and 100 the highest. Go back to the graphic.