Germany is altering energy plans amid gas concerns

Significance

Berlin has already put in place measures to boost coal-fired generation and is reconsidering its former hard line on nuclear plant closures. Liquefied natural gas (LNG) regasification facilities are being deployed at the fastest possible pace and may bring some partial relief in the second half of winter 2022/23.

Impacts

• Further significant reductions in gas supply via Nord Stream 1 would trigger stage three of Germany’s energy emergency system.
• German demand for LNG will keep LNG spot prices strong and contribute to gas shortages in developing countries which also use the fuel.
• Emissions levels will rise as more use is made of coal-fired generation plant.