June 20, 2022
Germany is stepping up efforts to respond to a cut in Russian gas supplies by reviving coal plants and providing financing to secure gas for the winter, an effort that would cost about 15 billion euros ($15.8 billion) at current prices. The package of measures was announced days after Moscow slashed deliveries on its main gas link to Europe, hitting supplies to Germany and creating a knock-on effect for France, Austria and the Czech Republic.
Bringing back plants burning the heavily polluting fossil fuel is the latest sign of how Europe’s climate fight is taking a back seat as governments seek to hedge against energy shortfalls.
Stephan Haufe, a spokesman for Germany’s economy ministry, said Monday at a regular news conference that despite the latest policy reversal the ruling coalition in Berlin is still standing by a pledge to aim for a complete exit from coal by 2030.
He also said Germany will respect limits set out in the European Union’s emissions certificates program. The European Commission’s energy spokesman, Tim McPhie, told reporters in Brussels on Monday that member states that resort to greater use of coal to secure energy supplies in the short term must respect the bloc’s binding climate goal for this decade.
Scholz’s administration also plans to offer industry incentives to reduce gas consumption and make unneeded supplies available for storage. The credit lines to refill reserves will be provided by state-owned lender KfW, the Economy Ministry said on Sunday.
While the government didn’t immediately provide details on the size of the program, German gas storage is at about 57% of capacity. Buying the nearly 120 terawatt hours needed to top up the facilities would cost about 15 billion euros at current rates of 123 euros per megawatt hour.