The situation is tense after the reduction of Russian gas supplies. Economy Minister Hubeck now wants to react with billions of meters – so that there is enough gas next winter, according to Welt.
In view of the reduction of Russian gas supplies, Federal Minister of Economy Robert Habeck (Greens) wants to take additional measures to save gas and increase precautions. For example, the use of gas for electricity generation and industry will be reduced and the filling of storage facilities will be promoted. To that end, the federal government is providing billions in funding, according to Deutsche Presse-Agentur. In addition, more coal-fired power plants will be used.
The situation is serious, Habeck said in a five-page document obtained by Deutsche Presse-Agentur. “Gas consumption must continue to decline, but more gas must be placed in storage facilities to compensate, otherwise it will be really tight in winter.”
Russia’s state-owned Gazprom has cut off gas flows through the Nord Stream pipeline to the Baltic Sea in recent days. The reason given was delays in the repair of turbine compressors by Siemens Energy. Habeck described the measure as politically motivated.
The tense situation and high prices are a direct result of Russia’s aggressive war against Ukraine, ordered by President Vladimir Putin, the green politician said. “It’s obviously Putin’s strategy to upset us, to raise prices and to divide us.”
He added that the missing quantities could still be replaced and that the gas storage facilities were still filling up, albeit at high prices. Security of supply is now guaranteed. However, gas consumption in the electricity and industrial sectors should now be reduced and the filling of storage facilities accelerated, Habeck said. “Depending on the situation, we will take further action.”
In particular, the plans are as follows: in order to ensure the storage of natural gas, the German government will soon provide an additional credit line of EUR 15 billion through the state-owned bank KfW, according to government sources. This credit has been discussed with the Ministry of Finance. The budget committee will be informed next week.
Habeck also plans to introduce a gas auction model this summer. It is about providing incentives to industrial gas consumers to save gas. In essence, the idea is that industrial customers who can do without gas will reduce their consumption in exchange for a market-financed fee – and make gas available so that it can be stored.
For the auction model, Trading Hub Europe, the Federal Bureau of Investigation and the Ministry of Economy want to develop a so-called gas control energy product. One such product exists in the electricity market to balance grid fluctuations.
“What we use less helps,” Habeck said. Industry is a key player in this, he said. Natural gas is not only important for heating homes, but also in industry, as a raw material for production and energy production.
As Habeck has already announced, less gas will be used to generate electricity. Instead, coal-fired power plants will be “used to a greater extent”. A similar law is due to be passed by the Bundesrat on July 8 and then enter into force quickly.
At the same time, according to the newspaper, the Ministry of Economy is preparing the necessary ministerial decision to set in motion the “gas replacement reserve”. To this end, power plants already available as backups will be upgraded – to be able to return to the market in the short term.
“We will activate the gas replacement reserve as soon as the law goes into effect,” Habeck said. “This means, to be honest, more coal-fired power plants for a transitional period. This is bitter, but it is absolutely necessary in this case to reduce gas consumption. We must and will do everything possible to store as much gas as possible in summer and autumn “. Gas storage facilities should be full by winter. That is the top priority, he said.
Current storage levels in Germany are around 56.7%, according to a report released by the Federal Network Agency on Saturday. The federal government’s goal is for the gas storage facilities to be 80% complete by October 1st and 90% by November 1st, so that they are ready for possible shortages.
According to the ministry, natural gas contributed about 15% to electricity generation in 2021, but this share is likely to have been lower as early as the first months of 2022.
As early as March, the federal government had allocated 1.5 billion euros for the purchase of natural gas for storage as a result of the Russian attack on Ukraine. In addition, the federal government had taken various other measures – such as aid to energy companies and specific plans to build liquefied natural gas terminals in Germany. In the medium and long term, the expansion of renewable wind and solar energy in Germany will accelerate enormously.
Source: Capital
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