Frankfurt, June 19 (BNA): Germany announced, on Sunday, its last steps to boost gas storage levels in preparation for the upcoming winter season, when it fears that Russia, which has halted supplies in recent days, will reduce or stop supplies altogether.
Germany, which relies on Moscow for most of its gas needs, is seeking to fill its gas storage facilities and phase out Russian energy imports, Reuters reported.
The German Economy Ministry, which is responsible for the security of energy supplies in Europe’s largest economy, said the new measures will include increased reliance on coal-fired power plants as well as an auction system to stimulate the industry to consume less energy.
A government source, who asked not to be named, said the plan also includes 15 billion euros ($15.8 billion) in credit lines to the German gas market operator, via state bank KfW, to fill gas storage facilities faster.
These measures come on the heels of a package unveiled earlier this year to provide energy companies and the German economy with subsidy payments to manage the Ukraine crisis, which has driven up energy costs.
Bringing coal-fired power plants back into the mix could add about 10 gigawatts of capacity in the event of a critical gas supply situation, the ministry said, adding that the corresponding law would pass to the upper house of parliament on July 8.
“It hurts, but in this situation it is absolutely necessary to reduce gas consumption,” said Economy Minister Robert Habeck, a Green Party member who has pushed for a faster exit from carbon-intensive coal.
“Gas storage facilities should be filled by winter. This is the top priority,” Habek said, noting targets for storage levels of 80% by October and 90% by November.
According to data from Gas Infrastructure Europe, German gas storage levels were at 57.03% as of June 17, up from 29.69% on February 24.