Page 6 - EurOil Week 25 2022

EurOil COMMENTARY EurOil

The smog of war: Europe turns back

to coal amid cuts in Russian gas flow

With several member states now resorting to coal-fired power, the goals of Fit-for-55 look

increasingly allusive.

RUSSIA FOLLOWING another round of reductions in replace some gas use in power generation with
Russian natural gas supply, several European coal to conserve gas supply.
WHAT: countries have raised the prospect of ramping “That means, to be honest, more coal-fired
Austria, Germany, Italy up dirtier coal-fired power generation to avert power plants for a transitional period,” Habeck,
and the Netherlands have potential energy shortages this coming winter. a member of the Greens, one of three parties that
all signalled that coal can While these moves may well be prudent under forms Germany’s coalition government, said.
help see Europe through such extreme circumstances, they also cast fur- “That’s bitter, but it’s sheer necessity in this situa-
the energy crisis. ther doubt on the EU’s ability to live up to the cli- tion to reduce gas consumption.”
mate aspirations set out in its Fit-for-55 package. Habeck’s party has pushed for a faster exit
WHY: After already slashing gas flow to buyers in from coal.
Austria, Germany, Italy Bulgaria, Denmark, Finland, Germany, Poland Germany previously had its nuclear power
and the Netherlands have and the Netherlands in April and May, Gaz- plants to fall back on, but it shut over 4 GW of
all signalled that coal can prom announced in mid-June it was reducing capacity at the end of last year, in line with gov-
help see Europe through shipments via the Nord Stream 1 by 60%, citing ernment commitments made in the wake of the
the energy crisis. technical difficulties, although European lead- 2011 Fukushima nuclear disaster. It is due to
ers have panned the move as politically-moti- close a similar amount of capacity at the end of
WHAT NEXT: vated. Since then, Austria, Germany, Italy and this year, and so far the government has shown
While resuming the Netherlands have all signalled that restoring no indication it will revise this schedule. This is
coal burning may coal-fired power generation can help see Europe despite the fact that most Germans are now in
be necessary, it also through the energy crisis. favour of nuclear power, at least according to a
undermines the EU’s In Germany, Europe’s biggest energy market, poll published earlier this month by pro-nuclear
efforts towards net zero. the government announced on June 19 it would association Nuklearia, which estimated that 65%

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