Page 12 - FSUOGM Week 15 2022

FSUOGM COMMENTARY FSUOGM

In addition to its own use of gas to power its the industrial sector (for power and heat supply,
economy, Germany is also home to the largest or in chemical processes), followed by private
gas storage tanks in Europe, other than Ukraine, households (mostly heating and cooking), pub-
and re-exports about half of the gas it receives. lic power and heating supply, manufacturing and
Ukraine’s 33.57 bcm of gas storage is just under trade. The lion's share of gas is burned to pro-
80% of all gas storage capacity outside the EU duce heat, and only a fraction is used to produce
and essential to ensuring there is enough gas electricity.
during the winters. Ukraine’s storage is also Gas burning accounted for 15.3% of Ger-
about 21% of all of Europe’s (EU and non-EU) man electricity generation last year, according
storage capacity. to BDEW, the German federal association of
The EU gas storage capacity is a significant energy and water management. In heating, gas
161 bcm, with Germany having the most indi- keeps half of Germany's 41.5mn households
vidual storage capacity (26 bcm), followed by warm. In manufacturing some industries are
Italy (20 bcm) and the Netherlands (15 bcm). entirely dependent on gas, where it is both a fuel
This role of being the largest warehouse of gas in and a feedstock.
the EU makes Germany a gas hub and is another While Germany is successfully transition-
reason the country has remained so committed ing to green energy, because of the government
to buying Russian gas. decision to decommission its NPPs in the short
Germany gets a lot of its gas from Norway term, gas use is expected to increase, to take up
and accounts for 42.8% of all Norwegian gas the extra load. Germany had closed NPPs by the
exports, but Norway’s fields are already maxed end of 2021 with a total capacity of 4.1 GW – a
out and also in decline. significant amount of capacity that needs to be
Because BAFA does not publish details on replaced. This was a decision some say caused
the origin of gas imports there is some confu- last year’s energy crisis in Europe.
sion over just how much each country supplies. The former German government said that the
Consultants ICIS estimates for German supply planned exit from nuclear and coal-fired power
show that in December 2021 Russian pipeline generation means that mid-term gas demand
gas accounted for 32% of Germany’s imports, will increase. Experts estimate that to replace
Norwegian gas 20% and Dutch 12%, with the missing nuclear capacity Germany requires
another 22% of gas supplies in storage and the an additional 3 bcm of gas (30 TWh) per year, or
rest from other smaller sources including a tiny 3% of Germany’s gas demand. The pressure on
amount of domestic production. In 2020, the the government to retain its gas supplies is only
country produced 5.7 bcm of natural gas, but enhanced, as to cut these off now would result
according to geologists, the fields are nearing in a double shortfall from the missing gas and
depletion. However, Germany also imports 11% nuclear power supplies arriving at the same time.
of its gas from Czechia, which is also Russian gas
in origin, bringing Germany’s total reliance on Breaking the Russian gas habit
Russian gas to 43%, according to ICIS estimates. Germany has made amazing progress in switch-
However, the economy and climate ministry said ing to renewables, which at 40% of gross power
in 2022 that 55% of gas imports came from Rus- production are now by far the largest contributor
sia in 2021. to energy production, but despite the breakneck
All of Germany’s gas is delivered by pipe- speed renewables have been growing at, it will
line, with Nord Stream 1 and 2 being the most still take several more years to increase that share
famous, but it also receives gas via the Yamal-Eu- further.
rope pipeline that runs from Russia via Poland, And it will take the rest of the EU even longer.
and another smaller pipeline that connects Ger- Renewables comprise 34% of the EU average
many to Czechia. power mix. Only Norway and Iceland have tran-
Currently, most of Germany’s gas is used in sitioned to 100% renewable power generation,

P12 www. NEWSBASE .com Week 15 15•April•2022