Germany taking steps on 'serious' gas situation, says economic minister

The German government is taking measures to bolster gas storage levels amid a worsening of the market situation in the last few days, Economy Minister Robert Habeck said.

“Security of supply is currently guaranteed. But the situation is serious,” Habeck said in an emailed statement. “Gas consumption must fall further, and in return more gas must be put into the storage facilities, otherwise things will really get tight in the winter. We will now take the next steps.”

Germany will reduce gas consumption in the power sector and industry and push the filling of storage facilities, Habeck said, adding that the government is ready to take further measures if needed.

The Greens party minister said the country will rely more on coal-fired power plants to produce electricity and a bill providing the legal basis is currently in parliament. It will come into force quickly after discussion in the upper house of parliament, where Germany’s 16 states are represented, on July 8. 

“That means, we have to be that honest, more coal-fired power plants then for a transitional period,” Habeck said. “That’s bitter, but it’s simply necessary in this situation to reduce gas consumption. We must and we will do everything we can to store as much gas as possible in the summer and fall.” 

An auction model will also begin this summer to encourage industrial gas consumers to save fuel, which can then be put in storage. The government will shortly make available additional credit lines by state-owned lender KfW to provide gas-market manager Trading Hub Europe with liquidity to purchase gas for storage.

Germany’s gas storage levels increased to a total of 56.67% on Saturday from 56.29% on Friday, the Federal Network Agency said on its website. 

Siegfried Russwurm, president of the German industry lobby group BDI, said the country should “stop gas-fired power generation now and get coal-fired power plants out of reserve immediately,” in an interview with Funke Mediengruppe published Saturday. Importing electricity from neighboring countries has its limits, he said.