Government plans – How the gas storage facilities are to be filled up by autumn

The German press agency had already quoted from the paper in which the plans of the Minister of Economic Affairs are listed. The situation is serious, it says. More gas must be stored in the storage tanks, “otherwise it will be really cramped in winter”. The Russian state-owned company Gazprom had significantly reduced the flow of gas through the Nord Stream 1 Baltic Sea pipeline in the past few days.

Plans for gas auction model

Among other things, Habeck now wants to get industry to use less natural gas so that more gas ends up in storage. He is planning an auction model. Industrial customers who reduce their gas consumption should receive a fee for this that is financed via the market.

Loans of 15 billion euros to procure gas

Furthermore, the federal government wants to provide an additional credit line via the state bank KfW. According to information from the German Press Agency, the volume should be 15 billion euros. This is intended to give Trading Hub Europe (THE), which is run by eleven long-distance gas network operators, the liquidity it needs to buy gas and fill the storage facilities. The loan is secured by a federal guarantee. Gas prices have risen sharply in the wake of the Russian attack on Ukraine.

The loan is to be secured by a federal guarantee and, according to dpa, has been agreed between the Ministry of Economic Affairs and the Ministry of Finance. The budget committee will be informed next week.

Greater use of coal-fired power plants

The paper describes the plan to use more climate-damaging coal power for electricity production as “bitter, but almost necessary”. A corresponding law is to be passed by the Federal Council on July 8th and then come into force quickly.

At the same time, a ministerial regulation is being prepared – with the aim of setting the so-called gas replacement reserve in motion. For this purpose, power plants that are available as a reserve are to be upgraded in order to be able to return to the market in the short term. “That means more coal-fired power plants for a transitional period,” explained Habeck. The gas storage tanks should be full by winter. That has top priority.

Gas storage is currently almost 57 percent full – target: 90 percent