Germany plans to compensate for the cut in Russian gas supplies by increasing the burning of coal – the most carbon-intensive fossil fuel in terms of emissions.
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Germany has said the deteriorating gas market situation means Europe’s largest economy will have to cut back on the use of natural gas to generate electricity and burn more coal for a “transitional period”.
Economics Minister Robert Habeck warned on Sunday that without precautionary measures against supply bottlenecks, things would “get really tight in winter”.
As a result, Germany will seek to compensate for a drop in Russian gas supplies by increasing burning of coal – the most emission-intensive fossil fuel and therefore the key replacement target in the transition to renewable alternatives.
“It’s bitter, but in this situation it’s almost necessary to reduce gas consumption. We must and will do everything we can to store as much gas as possible in summer and autumn,” Habeck said.
“The gas storage tanks have to be full in winter. That’s top priority,” he added.
That comes shortly after an ominous warning from Russia’s state-backed energy giant Gazprom, which heightened fears of a complete disruption in supplies to the European Union.
Gazprom said last week that it further restricted supplies via the Nord Stream 1 pipeline, which runs from Russia to Germany under the Baltic Sea.
Federal Economics Minister Robert Habeck said the “tense situation and high prices are a direct result of Putin’s war of aggression against Ukraine”.
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Gazprom cited a technical issue for the supply cut, saying the problem stems from the late return of equipment serviced by Germany’s Siemens Energy in Canada.
Habeck has denied that claim, saying the move was politically motivated and designed to unsettle the region and drive up gas prices.
It is not yet known when or if Nord Stream 1 gas flows will return to normal levels.
“Our product, our rules”
In fiery comments likely to set alarm bells ringing in all European capitals, Gazprom CEO Alexei Miller said on Thursday that Russia will play by its own rules after the company halved supplies to Germany.
“Our product, our rules. We don’t play by rules we didn’t create,” Miller said during a panel session at the St. Petersburg International Economic Forum, according to The Moscow Times.
Italy, Austria and Slovakia have also reported delivery cuts from Russia.
Policy makers in Europe are scrambling to fill underground storage with stocks of natural gas to provide homes with enough fuel to keep the lights on and homes warm before the cold returns.
The EU, which gets around 40% of its gas through Russian pipelines, is trying to quickly reduce its reliance on Russian hydrocarbons in response to months of the Kremlin’s onslaught in Ukraine.
“The tense situation and high prices are a direct result of Putin’s war of aggression against Ukraine. There is no mistake. Also, it’s obviously Putin’s strategy to unsettle us, drive up prices, and divide us. We won’t allow that. We defend resolutely, precisely and carefully,” said Habeck.
Germany’s storage facilities are currently utilized at around 56 percent and are thus above the level of storage in the same period of the previous year, said Habeck.
“The missing quantities can still be replaced and the gas storage facilities are still being filled, albeit at high prices. Security of supply is currently guaranteed, but the situation is serious,” he added.