Germany faces natural gas ‘crisis,’ raises warning level

BERLIN –

Germany activated Thursday the second stage of its three-stage emergency plan to supply natural gas supplies. It warned that Europe’s largest economy is in “crisis” and that storage targets for winter are at risk. This was after Russia cut energy deliveries to many countries.

The government saidThe decision comes after Russia cut natural gas flows last week and the escalating energy prices that were fueled by the war in Ukraine. As energy tensions between Russia and the West escalate, industrial customers will be asked to reduce their natural gas consumption. Germany and other countries are switching to coal as a substitute, which could threaten climate goals in Europe.

Robert Habeck, Economy & Energy Minister said.

Russia cut natural gas supplies to Germany, Italy and Austria last week. This comes as the European Union countries scramble to replenish their fuel storages for the fuel that is used to heat homes, power industry, and generate electricity in winter. Gazprom, Russia’s state-owned power giant, claimed that a part it sent to Canada was damaged and cut flows by 60% through Nord Stream 1 — Europe’s main natural gas pipeline.

Austria and the Netherlands have also issued first-stage warnings about supplies, and urged people not to panic. Germany and Italy, two of Europe’s largest buyers of Russian gas have called Russia’s reductions in gas politically motivated and warned that they could further slow down the economy.

“We are in an economy conflict with Russia.” saidHabeck accuses Moscow of trying to destroy European unity, and the solidarity it has shown towards Ukraine.

These cuts are in addition to gas shutoffs in recent weeks to Poland, Bulgaria and Denmark, Finland, France, and the Netherlands.

Germany’s government saidCurrent gas needs are being met, and its storage facilities have been filled to 58% capacity — more than at this time last years. It is not possible to reach the goal of 90% by December without further measures. said.

Habeck said that Germany would not cut off its neighboring countries as a response. said. Instead, it encouraged residents and industry to reduce their consumption.

Habeck stated that “the prices are already high and we need to be ready for further increases.” saidThe warning was made that “this will impact industrial production and become an enormous burden for many producers.”

Despite this, Germany’s energy industry lobbying organization BDEW is still active. saidIt supported the government’s decision. Calculations show that in the last few months, businesses have seen a reduction of 8% in their demand. To encourage savings further, the government plans auctions that pay large industrial consumers to surrender their contracts.

Habeck stated that the measures taken to prevent a collapse in energy markets included providing large loans to utility companies and gas distributors to deal with price spikes. said.

Germany could be forced to ration gas for industrial customers if it triggers the highest alert level. This would cause severe economic damage.

Habeck saidPeople can do their part by making changes to their home heating system and saving up 15% during the colder months.

He stated, “It can sound banal at times but you have to multiply it by 41 million households.” said.

Germany and other countries have been working together to obtain additional gas from their neighbors, Norway and the Netherlands, as well as liquefied gas from producers outside Europe. This is all in the effort to reduce Russia’s dependence by two-thirds by the year’s end.

To the horror and dismay of environmentalists the German government announced Sunday it would increase the combustion of more polluting coke and reduce the use gas for electricity production.

According to Carlos Torres Diaz senior vice president at Rystad Energie, the available coal-generating power that could be brought online could supply 9% country’s power requirements and spare a quarter off the gas that industry uses,

The Netherlands will also allow coal fired power stations to operate at their full capacity again in order to save gas that would otherwise be used for electricity.

Habeck blamed part of the blame for past German governments’ dependence on Russia for energy supplies, and failure to find alternatives.

He stated, “How different things could be if there had been massive progress in energy efficiency and expansion of renewables over these last few years rather than just being at a standstill.” said.

His ministry has recently presented a series of measures to accelerate the rollout of wind and solar power in Germany. The government has so far decided not to keep its three remaining nukes online beyond the year’s end.

____

Get in touch

Have any questions about the attack in Ukraine? Email [email protected].

• 
  If you would like to speak with a journalist at CTV News, please include your name, address, and contact information.
• 
  Your comments could be used in a CTVNews.ca article.