Germany has ramped up purchases of electric heaters from Türkiye amid growing worries about the soaring energy prices and possible gas shortages in Europe’s largest economy when winter comes.
Europe and Germany have all but accepted an energy crisis this winter after a drastic reduction in gas flow from Russia, their main supplier. That has caused serious headaches for the German industry, which accounts for a quarter of the country’s gas demand.
Deliveries from Russia have dwindled due to what Moscow is calling maintenance issues and Berlin says is weaponizing of energy, prompting the European Union to agree on an emergency plan to curb demand. The bloc says the move has been politically motivated as tensions have been escalating amid sweeping sanctions over Russia's invasion of Ukraine.
In obvious efforts to prepare for all scenarios, Germany’s imports of electric heaters from Türkiye soared 82% year-over-year in the first half of this year, said Turkish Houseware Association (ZÜCDER) Chair Mesut Öksüz said.
Around 600,000 electric heaters have been sold in Germany from January through June, jumping 35% year-over-year, according to market research firm GFK.
Öksüz says this trend would only continue to go up in the period ahead.
Around half of the German households rely on gas for their heating while gas also accounts for a third of the industry’s energy. In recent years half of that gas has come from Russia.
"Our exports to Germany increased by 82% in the first half of the year compared to the same period of 2021 and reached $20 million. We exported $30 million worth of electric heaters to this country in the whole of last year. We anticipate that this figure will be multiplied by the end of the year," Öksüz told Anadolu Agency (AA).
Feeding into already high energy costs, the German government will impose levies on gas consumers from Oct. 1 that will add several hundred euros to the average family’s annual energy bill. To cushion the blow, sales taxes on gas are set to be reduced to 7% from 19% while the levies are in place.
Higher energy prices mean inflation is unlikely to cool off anytime soon: Germany’s annual inflation rate in July was 8.5%, in line with the wider eurozone’s record rate of 8.9%.
Türkiye is exporting half of up to 6 million electric heaters that are being manufactured in the country per year, said Öksüz. Most sales are made to the Balkans, Russia, the Middle East, the Turkic Republics and North Africa.
At least 80% of the 50 million to 60 million heaters purchased every year in Europe are supplied from China, Öksüz said. The rest comes from Malaysia, South Korea, Germany, Italy and Türkiye.
"Electric heaters stand out as a solution to the energy crisis expected to be experienced in the winter months in Europe due to Russia’s cutting off of natural gas," Öksüz noted.
"The natural gas crisis triggered by Russia has driven Europe to save energy, and we are now receiving a serious demand from chain markets in Europe. Türkiye is evaluating the markets that China has lost due to the breakdown in the supply chain. Our exports of electric heaters to many countries of Europe have increased."