Germany to restart old coal plants after Russia cuts back gas supplies

Germany to restart old coal plants after Russia cuts back gas supplies
Worries over winter fuel crisis* Move at odds with climate goals * Italy set to take action
Germany will significantly increase its use of coal to preserve energy supplies ahead of the winter as Russian cuts to gas exports threaten shortfalls in Europe’slargest economy. The German government said yesterday it would pass emergency laws to reopen mothballed coal plants for electricity generation and auction gas supplies to industry to incentivise businesses to curb consumption. Themoveillustrated the depthof concern in Berlin over possible gas shortagesin thewintermonths. “This is bitter but, in this situation, essential tolowering the use of gas,” said German economic minister Robert Habeck,amemberof theGreen party. Russia cut capacity on the main gas export pipeline to Germany this week by60 per cent.Westernofficialsare convinced that Moscow is weaponising its gas exports in response to EU sanctions over thewarinUkraine. Italy, which has also seen gas supplies from Russia fall, is expected to announce emergency measures in the coming daysif suppliesare not restored. Habeck said Berlin was working on a newlaw to bring back temporarily up to 10 gigawatts of idle coal-fired power plants for as long as two years. That would increase Germany’s dependence on coal for electricity generation by up toa third. “The situation is serious,” said Habeck. “It is obviously Putin’s strategy to upset us, to drive prices upwards, and to divide us . . . We won’t allow this.” The plan is at odds with Germany’s climate policy: it aims to phase out coal by 2030. Germany’s three remaining active nuclear power plants are scheduled to go off the grid by the end of this year. Theirlifespanwill not be extended as the government has concluded that the technical and safety hurdles are too high. Before Russia’s invasion in February, Germany imported 55 per cent of its gas from Russia. In recent days, Russia’s state-controlled gas exporter Gazprom has reduced supply volumes through the Nord Stream 1 pipeline, blaming Canadian sanctions that left pumping equipment maintained by Siemens Energy strandedinMontreal. Germany andits alliesin Europe have rejected Gazprom’s claims, arguing any technical issue was a pretext. Gazprom has not utilised alternative pipeline routes to make up for the supply shortfall throughNS1. German chancellor Olaf Scholz called dependence on Russian energy “a mistakeofGermany’seconomic policy”and told newswire DPA that previous governments had missed out on creating alternative gas supply routes. Germany plans to install four floating liquefied natural gas terminals and has prioritised refilling gas storage tanks that can be usedinwinter. “We need andwewill to do everything to store as much gas as possible,” said Habeck, calling it the “highest priority” and adding that “it would really be a tight squeezeinwinterotherwise”
Jun 20, 2022 12:41
financial times |

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