European Economics Thread

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gelgoog

Lieutenant General
Registered Member
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Germany extends emergency coal capacity for another winter
Faced with another winter of scarce gas supplies, the German government is keeping its lignite coal power plants on standby for one more season.
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The emergency measure decided last year will be extended for the coming winter, keeping some 1.9 GWs of lignite capacity at the ready – adding to Germany’s existing 45 GW of coal power plants, according to a decision announced on Wednesday (4 October) by the German government.

The lignite plants have a single purpose: to push gas out of the power market at times of peak demand as a way of keeping prices low.
 
siegecrossbow

siegecrossbow

General
Staff member
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gelgoog said:
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Germany extends emergency coal capacity for another winter
Faced with another winter of scarce gas supplies, the German government is keeping its lignite coal power plants on standby for one more season.
...
The emergency measure decided last year will be extended for the coming winter, keeping some 1.9 GWs of lignite capacity at the ready – adding to Germany’s existing 45 GW of coal power plants, according to a decision announced on Wednesday (4 October) by the German government.

The lignite plants have a single purpose: to push gas out of the power market at times of peak demand as a way of keeping prices low.
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Bye bye German manufacturing. You’ve been a great inspiration for dozens of industrial powerhouses world wide. It was nice knowing you.
 
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tamsen_ikard

Junior Member
Registered Member
Can someone explain to me how Europe dealth with the scarcity of Natural Gas that they used to buy from Russia?

Last year we read a lot of news of high gas prices in europe. But I don't hear about it this year. Does this mean they have solved the gas shortage?

So, where did they get all this huge supply of gas in just 1 year? LNG cannot be the answer right since LNG will require massive infrastructure to process LNG in seaports
 
K

KYli

Brigadier
tamsen_ikard said:
Can someone explain to me how Europe dealth with the scarcity of Natural Gas that they used to buy from Russia?

Last year we read a lot of news of high gas prices in europe. But I don't hear about it this year. Does this mean they have solved the gas shortage?

So, where did they get all this huge supply of gas in just 1 year? LNG cannot be the answer right since LNG will require massive infrastructure to process LNG in seaports
Click to expand...
Coal and renewable energy and importing more expensive gas from the US, Australia, and Qatar etc..
 
G

gelgoog

Lieutenant General
Registered Member
tamsen_ikard said:
Can someone explain to me how Europe dealth with the scarcity of Natural Gas that they used to buy from Russia?
Last year we read a lot of news of high gas prices in europe. But I don't hear about it this year. Does this mean they have solved the gas shortage?
So, where did they get all this huge supply of gas in just 1 year? LNG cannot be the answer right since LNG will require massive infrastructure to process LNG in seaports
Click to expand...
They did not solve the shortage problem at all. They just coped with it. They shut down or throttled down the energy intensive industries (making bricks, making glass, making steel, making chemical products, etc). Some industries started burning fuel oil instead of natural gas. They put more coal power plants online. Plus the winter was mild. And yes they massively ramped up LNG purchases from the US and Qatar. But there is not enough LNG in the whole world to replace the former Russian natural gas sales to Europe. It is as simple as that. Plus other large economies like Japan also depend massively on LNG imports and have long term fixed contracts.

But Europe is still facing a huge energy scarcity. Which is why the German economy keeps contracting for three quarters in a row and counting. Heavy industry is basically shutting down. Which means that Germany will go from being an industrial powerhouse to being relegated to low energy intensity manufacture like can be done in many other countries.
 
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