'Gas Supply Emergency' German Government Restarts Coal-Fired Power Plants

Incentives for Companies Reducing Gas Consumption... Aim to Stock 90% of Gas Storage Facilities for This Winter

Robert Habeck, German Minister of Economy [Photo by Reuters Yonhap News]

[Asia Economy Reporter Park Byung-hee] The German government has decided to restart coal-fired power plants to secure sufficient gas supply for this winter. Last week, when Russia's state-owned gas company Gazprom announced a significant reduction in gas supply to Europe, the German government responded swiftly.

On the 19th (local time), the Wall Street Journal reported that the German government approved an emergency bill including the restart of coal-fired power plants. The German government plans to introduce a gas auction system to reduce corporate gas consumption and provide incentives to companies that cut their gas usage.

Last week, when Gazprom announced a significant reduction in gas supply through the Nord Stream pipeline connecting Germany and Russia, the German government immediately took action.

Gazprom announced on the 14th that it would reduce gas supply through Nord Stream by 40%, and the following day, on the 15th, it announced an additional 33% reduction. As a result, gas supply through Nord Stream has decreased from the original 167 million cubic meters to 67 million cubic meters, a reduction of nearly 60%.

Gazprom explained that it had no choice but to reduce gas supply because it had not received back the gas turbines sent to Siemens Energy in Germany for maintenance. However, the German government views Russia's reduction in gas supply as politically motivated.

Robert Habeck, Germany's Minister for Economic Affairs, said, "This is Vladimir Putin's strategy to shake us, raise prices, and divide us," adding, "We will not allow this and will protect ourselves."

Minister Habeck stated that the goal of this special law is to fill 90% of gas storage facilities by December this year. He explained that currently, only 56% of the storage facilities are filled.

Minister Habeck said the government proposal is scheduled to be approved by the German Federal Council on July 8, and the law will be effective until March 31, 2024. He expressed hope to secure sustainable resources to replace Russian gas by the first quarter of 2024.

Minister Habeck is the co-leader of the Green Party, and this special law effectively reverses the Green Party's pledge in last year's general election to reduce fossil fuel use.

Minister Habeck said it is painful to rely on coal again, but under the current circumstances where gas consumption must be reduced, securing sufficient gas reserves until winter is the highest priority. Regarding the gas auction system, he did not disclose specific plans but said the auction would start this summer.

Since the outbreak of the war in Ukraine, the German government has significantly reduced its dependence on Russian gas. According to German government estimates, before the war, Germany imported 55% of its gas from Russia, but that ratio has now dropped to 35%. Gas accounted for about 15% of public sector electricity consumption in Germany last year. Minister Habeck said this proportion would decrease further this year.

This content was produced with the assistance of AI translation services.