Germans fire up old coal plants

Germany will restart coal-fired power plants and offer incentives for companies to curb natural gas consumption, marking a new step in the economic war ­between Europe and Russia.

Steam rises from a chimney of the coal-fired Grosskraftwerk Mannheim (GKM) power plant in Mannheim, southwestern Germany. Picture: AFP

Germany will restart coal-fired power plants and offer incentives for companies to curb natural gas consumption, marking a new step in the economic war ­between Europe and Russia.

Berlin unveiled the measures on Sunday after Russia cut gas supplies to Europe last week as it punched back against European sanctions and military support for Ukraine.

The steps, part of a broader strategy initiated after the invasion of Ukraine, aim to reduce gas consumption and divert gas deliveries to storage facilities to ensure that the country has enough reserves to get through the winter.

Russia’s gradual cutting of gas supplies has raised the spectre of a potential fuel shortage if ­Europe goes into winter with less-than-full stowages. It has also raised prices, putting additional pressure on economies that are already struggling with high inflation and rising borrowing costs and face the prospect of a recession.

Nord Stream, the main channel for Russian fuel to Europe, has reported a sharp drop in gas supplies.

Gazprom has blamed the shortfall on missing turbine parts that were stuck in Canada due to sanctions. European officials and analysts dismissed the explanation.

Germany imports about 35 per cent of its natural gas from Russia, down from 55 per cent before the war, and uses most of it for heating and manufacturing, according to German government estimates.

Last year, power generation using natural gas accounted for about 15 per cent of total public electricity in Germany, Economy Minister Robert Habeck said.

To accelerate the decline of gas in the power mix, Mr Habeck outlined a number of steps the government was taking to reduce reliance on gas and build up stores for the coming winter.

In a U-turn for a leader of the environmentalist Green Party, which has campaigned to reduce fossil-fuel use, Mr Habeck said the government would empower utility companies to extend the use of coal-fired power plants.

This would ensure that Germany has an alternative source of energy but would further delay the country’s efforts to slash carbon emissions.

“This is bitter,” Mr Habeck said of the need to rely on coal. “But in this situation, it is necessary to reduce gas consumption. Gas stores must be full by winter. That has the highest priority.”

Mr Habeck said the measure expires on March 31, 2024, by which time the government hoped to have created a sustainable alternative to Russian gas.

The Wall Street Journal