Germany is preparing for a possible supply stoppage from Russia – Putin had announced that he would only accept payments for gas imports in rubles. Crisis teams have also been meeting in Austria for weeks.
Of APA, Roman Vilgut | 10:47 am, March 30, 2022
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SPAIN ENERGY SAVINGS GAS CONFLICT © (c) APA/AFP/JOSEP LAGO (JOSEP LAGO)
In the context of the Russian war of aggression in Ukraine, the German government is preparing for a significant deterioration in gas supplies. German Economy Minister Robert Habeck (Greens) called for the early warning level of the gas emergency plan on Wednesday in Berlin. This is for precautionary purposes. Security of supply remains guaranteed. According to the emergency plan, there are three levels of crisis.
In an emergency, domestic customers would be particularly protected. “There are currently no supply bottlenecks,” explained Habeck. “However, we must increase precautionary measures to be prepared in the event of an escalation by Russia.” A crisis team convened when the early warning level was declared. “The crisis team analyzes and assesses the supply situation so that – if necessary – further measures can be taken to increase supply security. The federal government is doing everything possible to continue to ensure security of supply in Germany.”
Austria: Crisis teams in action for weeks
“While our neighbor Germany is prepared for a possible freeze on gas supplies from Russia and reacts as a precaution to protect the population and the economy, Minister Gewessler obviously misjudges the gravity of the situation and has no plans,” he criticized. SPÖ Energy Spokesperson Alois Schroll. Only assurances can be heard from the black-green government. “Due to the current explosive nature, this is not enough,” warns Schroll.
The Department of Energy disagrees. The Protection of families is also top priority in Austria. Crisis teams have been monitoring the situation for several weeks, as the energy regulator E-Control emphasizes. This is also where you decide whether contingency plans are activated. “There is a permanent monitoring of the situation”, confirms the regulator. The emergency plan was updated in 2019 and published on the ministry’s website.
Enabling an “early warning phase” like in Germany is not required in Austria, says Michael Woltran, CEO of Austrian Gas Grid Management AG, AGGM. Everything that constitutes the “early warning level” in Germany was started in Austria a good month ago. In an emergency, Climate and Energy Minister Leonore Gewessler (Greens) convenes the Energy Steering Committee. However, the intervention in the market through control measures is so profound that we want to avoid this stage for as long as possible. Appeals for voluntary industrial shutdowns to save gas are also conceivable in Austria. However, there are no matching ads yet.
Gas storage levels are currently in line with the season. Consumption usually drops significantly from April onwards, when the heating season ends and temperatures rise again. The supply of homes is thus assured, assures E-Control.
For the In industry, the situation is obviously different. The paper industry, followed by the chemical industry, is the one most in need of gas in the Austrian industry. Together, the two sectors require more than a tenth of Austria’s total gas consumption. Other gas-intensive industrial sectors are iron and steel production, the building materials industry and food production, according to data from the Austrian Economic and Statistics Chamber for 2020.
Germany wants to reduce gas consumption
The German Ministry of Energy now goes further and appeals to gas consumers: “From now on, all gas consumers – from companies to individuals – are also protectedreduce your consumption as much as possible.”
According to the ministry, the early warning level means that a crisis team will meet at the Ministry of Economy, made up of authorities and energy providers. Gas suppliers and pipeline operators are required to regularly assess the situation for the German government. The state has not yet intervened. Gas traders and suppliers, transmission and distribution system operators are taking “market-based” measures to maintain gas supply: According to the ministry, this includes using flexibilities on the procurement side, using of gas storage and the optimization of cargo flows.
Appeal to consumers and businesses
The head of the German Federal Network Agency is appealing to consumers and businesses to help in the face of an imminent deterioration in gas supplies. “The Federal Network Agency calls on consumers and industry to contribute and prepare for all scenarios”wrote Federal Network Agency President Klaus Müller on Twitter on Wednesday.
The objective is and remains a deterioration in gas supplies to Germany and Europe. avoided through savings and acquisitions. In the context of the Russian war against Ukraine, the German government is preparing for a tense gas supply situation. German Economy Minister Robert Habeck therefore announced the early warning level of the gas emergency plan on Wednesday.
The German Economy Ministry declared the early warning level of the gas emergency plan. This is aimed at increasing precautionary measures to arm the Federal Republic against escalation by Russia and therefore a weaker gas supply. The background to this is the government’s demand in Moscow that gas deliveries be paid for in rubles only. The West and therefore Germany reject this.
The German Ministry of Economic Affairs emphasizes that security of supply is currently guaranteed.
EARLY NOTICE LEVEL:
NO STATE INTERVENTION YET
The gas emergency plan has three escalation levels – the early warning level, the alert level and the emergency level. According to the European regulation, the early warning phase must be triggered when there are concrete, serious and reliable indications that an event may occur that is likely to lead to a significant deterioration of the gas supply situation. A crisis team is now assembled at the German Ministry of Economic Affairs, which includes authorities and energy providers. Suppliers and pipeline operators now have to regularly assess the situation for the German government. However, the state is not yet intervening in the gas market – instead, market participants must ensure that the gas supply is guaranteed. This can be done, for example, using gas storage facilities.
ALARM LEVEL:
THE MARKET CAN STILL DEAL WITH THE DISTURBANCE ALONE
Then comes the alert level. It takes effect when there is an interruption in the gas supply or an exceptionally high demand for gas, which leads to a significant deterioration of the gas supply situation. However, the market is still able to handle this disruption or demand without the need for non-market-based measures.
EMERGENCY LEVEL:
INTERVENE STATE, DISTRIBUTED FEDERAL NETWORK AGENCY
The last level is the emergency level: it takes effect when there is an exceptionally high demand for gas or there is a significant interruption in the gas supply or other significant deterioration in the supply situation. According to the regulations, “non-market-based measures must be taken” to ensure the supply of gas to protected customers in particular – the state intervenes. According to the Ministry of Economy, the Federal Network Agency is becoming a “federal cargo distributor”. It then regulates the gas distribution in coordination with the grid operators. Certain consumer groups are particularly protected – they should be supplied with gas to the end if possible. This includes homes, social facilities like hospitals and gas power plants, which also serve to provide heat to homes.