Europe began to feel the consequences of gas delivery cuts from Russiawhich is why several countries of the old continent have decided go back to coalas an alternative to supply the lack of hydrocarbon and thus reduce gas consumption to accumulate reserves for next winter.
The situation has become even more complicated since last week, following Moscow’s announcement to cut supply through the gas pipeline North Stream 1affecting Germany, Italy, France Y Austria. The decision of the Russian government was made known at the same time that the leaders of these countries traveled to kyiv to support the candidacy of Ukraine to European UnionNA reported.
Flows through the Nord Stream 1 pipeline were reduced by nearly 60% while the german chancellor, Olaf Scholz, and their counterparts from France, Italy and Romania were traveling to Ukraine to support the country’s bid for the European Union. Russia’s decision led to oil prices soaring more than 40% in the last week.
In the wake of this, Germany decided to restart coal plants and provide financing to secure gas for the winter, an effort that would cost some €15 billion at today’s value. The objective is to reduce the volume of gas used to generate electricity and use coal instead, putting the percentage of electricity produced with gas at 15% in 2021 in the European country.
Currently, German gas storage is at 57% of its capacity. In AustriaMeanwhile, Verbund AG, controlled by the State, received this Sunday the order to prepare its coal-fired power plant in Mellach so that it can work. Hollandfor its part, decided to allow the full operation of the three remaining coal plants in the country until 2024.