The largest buyer of Russian gas in Europe rushed on Monday to find alternative fuel supplies amid prospects that countries on the continent may turn to burning more coal to overcome the shortage of Russian gas flows, threatening an energy crisis this winter if stocks are not replenished. Germany, Austria, and the Netherlands indicated that coal-fired power plants could help Europe navigate the crisis that has led to sharp increases in gas prices, adding to the challenge policymakers face in combating inflation.
Germany stated it may restart coal-fired power plants that it intended to phase out gradually.
German Economy Minister Robert Habeck expressed, "It is painful, but it is necessary amid this crisis to reduce gas consumption." Reuters reported that the German Ministry of Economy indicated that restarting coal-fired plants could add 10 gigawatts of capacity in case gas supplies reach critical levels, with discussions in the German Bundestag about a law related to this transition expected in July.
In Austria, the government agreed with utility company Verbund on Sunday to convert a gas-fired power plant to coal use if the country faces an energy emergency. On Monday, OMV stated that Austria is likely to receive half of its usual gas amount from Russia for the second consecutive day.
In the Netherlands, NOS television reported, citing government sources, that coal power plants in the country would be allowed to increase production to help reduce reliance on Russian gas. Last week, Russian state-controlled Gazprom reduced the capacity of Nord Stream 1, a major pipeline supplying gas to Germany and other European countries, citing delays in the return of equipment sent by Siemens Energy in Canada for maintenance. Kremlin spokesperson Dmitry Peskov stated, "We have gas ready for delivery, but Europeans need to return the equipment that needs to be repaired according to their commitments," while German officials said that Russia is using this as a pretext to reduce supplies.
