Germany to Test Companies’ Abilities to Cope With Gas Emergency

By Bloomberg

Jun 19, 2023

image is BloomburgMedia_RWIBDIDWLU6801_20-06-2023_14-08-25_638228160000000000.jpg

The towers of the Linden gas-fired combined heat and power plant, also known as the 'Three Warm Brothers', in Hanover, Germany, on Tuesday, Sept. 20, 2022. The German government released another 2.5 billion euros ($2.5 billion) of credit lines to secure gas supplies, as it writes off Russia as a reliable energy supplier.

(Bloomberg) -- Germany’s energy regulator will practice a large-scale emergency exercise with companies this September, testing their preparedness should gas supplies decrease.

While Europe’s largest economy staved off a gas crisis last winter, it hasn’t yet called off the emergency status triggered in June last year. Turbulent price swings this month have served as a reminder that supply risks remain.

The country’s Economy Minister warned last week that Germany may still be forced to wind down or even switch off some industrial use if Ukraine’s gas transit agreement with Russia isn’t extended after it expires at the end of next year. Germany’s gas storage operators have also cautioned that storage sites could be completely depleted by January 2024 — even if current low demand patterns persist.

The one-day test is the first of its kind and should include different states, agencies, grid operators, gas suppliers and big industry customers, a spokesman for the federal network agency said. The focus is on the agency’s communication and decision-making procedure in case of a bottleneck.

By Petra Sorge