Germany at risk of energy shortages – utility
Germany may face gas supply disruptions this winter due to the continuing energy crisis, Markus Krebber, the CEO of the country’s largest utility, RWE, has warned.
According to Krebber, the cold weather threatens the energy security of the EU’s largest economy more than a year after Russia, once Germany’s main gas supplier, sharply reduced its exports of natural gas.
“If there is very cold winter or supply disruptions it can lead to very critical situations – and as a result to shortages and significantly higher prices,” RWE’s chief executive said in an interview with business magazine WirtschaftsWoche published on Thursday.
“We don't have any buffer in the gas system,” Krebber warned, adding that Germany should speed up the construction of gas import infrastructure to avoid future shortages.
Prior to the Ukraine conflict, the EU’s largest economy met up to 40% of its demand with gas from Russia. Last year, Berlin reduced its reliance on Russian energy by replacing it with imports of liquefied natural gas (LNG) – particularly from the US – which became the main source of gas for the country.
Western sanctions and the sabotage of the Nord Stream pipelines prompted Germany to turn to floating terminals in Wilhelmshaven, Lubmin, and Brunsbuttel. The country is now rapidly building up its own infrastructure to replace Russian supplies of natural gas.
Meanwhile, the German authorities continue to urge consumers to save gas and expect natural gas prices to remain high until at least 2027.
INES, the group of German gas storage operators, said in its August gas update that Germany would continue to be at risk of gas shortages until the 2026-2027 winter season unless it accelerates the construction of additional LNG terminals, extra gas storage capacity, or pipelines.
Earlier this week, the German government announced it will bring several coal plants back online in an effort to save gas and avoid power supply shortfalls this winter.
For more stories on economy & finance visit RT's business section
