Germany to increase gas storage levels to prepare for upcoming winters

Germany has revealed new measures to increase gas storage levels ahead of the upcoming winter when it anticipates that Russia may restrict or even stop the whole supply. The country, which depends on Moscow for most of its gas supply, is attempting to fill its gas storage tanks and gradually reduce its imports of Russian energy in the wake of Russia’s invasion of Ukraine.

However, the actions taken recently are implemented based on a plan outlined earlier this year to boost Germany's energy sector and economy with aid payments as it deals with the Ukraine situation, which has eventually driven up power prices.

According to Germany's Economy Ministry, the new measures will boost the country’s reliance on coal-fired power plants and introduce an auction system soon to encourage industries to consume minimally. The latest plan also contains credit lines worth USD 15.8 billion for the gas market operator of Germany to quickly fill gas storage facilities, through a state lender KfW.

Sources claimed that this could be the launch of Germany’s second phase of the emergency plan which begins when there is a significant likelihood of long due of gas supply shortages, which will allow utilities to carry on with higher high gas prices to customers and thus contribute to reducing demand.

Economic Minister Robert Habeck added that Russian President Putin's war of aggression against Ukraine is the direct cause of the stressful situation and soaring prices, but Germany is all set to respond wisely to the situation.

According to the Economy Ministry, restarting coal-fired power plants may add roughly 10 gigawatts of capacity in the event of a dire gas supply crisis. A relevant law is likely to be submitted to the upper house of parliament by 8th July.

Source Credit:

http://www.millenniumpost.in/business/germany-announces-steps-to-boost-gas-storage-482687?infinitescroll=1