A shortage of natural gas after Russia cut off supplies is forcing European countries to look at burning more coal. Making matters worse, surging gas prices are adding to rising inflation rates.
Market Watch is reporting that on Sunday, Germany’s economy minister, Robert Habeck announced that the country will restart coal-fired power plants in order to conserve natural gas. Germany will offer incentives for companies to curb natural gas consumption.
Berlin unveiled the measures after Russia cut gas supplies to Europe last week as it punched back against European sanctions and military support for Ukraine.
“That is painful, but it is a sheer necessity in this situation to reduce gas consumption,” said Habeck, a member of the Green party that has pushed for a faster exit from coal, which produces more greenhouse gases, according to Reuters.
“But if we don’t do it, then we run the risk that the storage facilities will not be full enough at the end of the year towards the winter season. And then we are blackmailable on a political level,” he said.
Italy’s Eni said it had been informed by Russia’s Gazprom that it would receive only part of its request for gas supplies on Monday, pushing the country closer to declaring a state of alert that will spark gas-saving measures.
Austria’s government agreed with utility Verbund on Sunday to convert a gas-fired power plant to use coal should restricted gas supplies lead to an energy emergency. The decision, taken by a “small crisis cabinet” led by Chancellor Karl Nehammer, came after Germany’s announcement on Sunday.
Dutch TTF natural gas futures, the benchmark European price, were up around 5 percent Monday to 124 euros (or $130) per megawatt-hour. That’s a more than 500 percent increase from a year earlier, reports Business Insider.
