Germany Weighs Intervention in Energy Markets to Bring Back Coal
Germany is considering intervening in its energy markets to bring coal plants back online and conserve natural gas as it rushes to limit further disruptions from top-supplier Russia.
Parliament on Thursday plans to vote on a regulation that would provide compensation to coal-plant operators if the supply situation deteriorates. It’s part of a raft of government efforts to shore up Germany’s energy security as regional tensions rise amid Russia’s war in Ukraine.
The new measure — which is part of a bigger energy framework package — will allow Germany to reopen 6.9 gigawatts of coal, 1.9 gigawatts of lignite and 1.6 gigawatts of oil capacity to boosts its energy security.
That would enable the country to cut the amount of gas used for power by 52% over the next 12 months, according to BloombergNEF estimates. Replacement of power plants will be allowed until March 2024.
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