Germany returns to coal to cope with lack of Russian gas

To reduce gas consumption, less gas must be used to generate electricity. Instead, coal-fired power plants will have to be used morethe Ministry of the Economy said in a statement.

The increased use of coal is a reversal for the coalition government of Olaf Scholz, which had promised to abandon this source of energy by 2030.

It’s bitter, but it’s essential to reduce gas consumption, reacted the Ecologist Minister of Economy and Climate Robert Habeck. A law to this effect should be adopted by the beginning of the summer, he added. His party had made the rapid exit from coal a priority.

Concretely, the government will allow the use of so-called coal-fired power stations reservecurrently only used as a last resort.

However, the Minister assured that this greater use of coal was provisionalin front of aggravation of the situation on the gas market.

The Russian giant Gazprom announced this week several cuts in gas deliveries by the Nord Stream gas pipeline, against the backdrop of a standoff between Western countries and Russia in the context of the war in Ukraine.

Claiming a technical problem, the group reduced its shipments by 40%, then 33%.

This decision had a heavy impact on several European countries, in particular Germany, Italy and France, which no longer receives Russian gas.

For Berlin, which continues to import 35% of its gas from Russia, against 55% before the war, the situation is seriousaccording to Mr. Habeck.

” There should be no illusions, we are in a showdown with Putin. “

Energy savings

Faced with the emergency, the government also wants to focus on energy savings. Every kilowatt countsinsisted the Minister.

A vast communication campaign to this effect was launched in mid-June aimed at the general public and companies.

With the emergency measures presented on Sunday, Berlin rises to a higher level: a system ofauction will be introduced for gas-consuming industries.

The State could offer, within the framework of a procedure similar to a call for tenders, a remuneration to the companies which will promise the most significant energy savings.

” We must do everything to reduce our consumption. And the industry is a key factor. “

This week, the Minister even left the threat of rationing for users and businesses hanging over him, raising the idea other legislative cost-saving measuresif the storage quantities were not increasing.

The worried manufacturing sector

A risk that worries the manufacturing sector. There are many industrial processes that cannot operate without gasalerted Sunday evening on the ZDF channel the president of the industrial lobby BDI, Siegfried Russwurm, fearing cascading consequences.

For now, security of supply is guaranteedhowever wanted to reassure Mr. Habeck on Sunday.

Reserves currently stand at 56%, a level higher than the average of recent years.

But we must do everything we can to store as much gas as possible in summer and autumn. Gas storage must be full for the winter. It’s the top prioritynoted Mr. Habeck.

The measures announced on Sunday also include the opening of a credit line from the public bank KfW to finance the purchase of gas by the player responsible for gas purchases for Germany, Trading Hub Europe.

At the end of April, the government had already introduced a law imposing on the owners of tanks a minimum filling, which could reach 90% at the beginning of December, under penalty of expropriation.

Since the start of the war in Ukraine at the end of February, Berlin has also been looking for new sources of supply, such as American or Qatari liquefied gas in particular.