Gas Consumption in Germany Trends
German households and industries are consuming more gas than last year, although less than before Russia's conflict with Ukraine. The Network Agency has expressed doubts about a gas shortage this winter, but encourages energy conservation to save money.
Private gas consumption in Germany has increased by 7.2% since October 1, with households and businesses using 2.5% more gas and industries consuming 11.1% more. Despite this, the Network Agency remains unconcerned due to full gas storage facilities and stable gas imports. However, they advocate for responsible gas usage to save costs.
Gas prices have also been on a downward trend, with the average price for new consumers now at 8.25 cents per kilowatt hour - the lowest since October 2021. Nonetheless, the prices were significantly lower before the conflict in Ukraine, ranging between 4.3 and 6.3 cents per kilowatt hour at the start and middle of 2021.
Gas Consumption Impact and Measures
The conflict between Russia and Ukraine has led to a surge in gas prices and disrupted energy supplies, impacting energy-intensive industries. Germany turned to liquefied natural gas (LNG), which is more expensive than pipeline gas, exacerbating costs for sectors like steel, fertilizers, chemicals, and glass.
To maintain gas supply and encourage energy conservation, measures like developing hydrogen infrastructure, regulatory frameworks, network expansion, energy storage, and grid stability are being implemented. The focus is on evolving from natural gas pipelines to cleaner alternatives like hydrogen and ensuring a secure and efficient energy grid.
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Enrichment insights:
- Russian Gas Disruption:
- Russia's decision to halt natural gas supplies to Germany led to a spike in gas and electricity costs for energy-intensive industries.
- Shift to LNG:
- Germany adopted liquefied natural gas (LNG) as an alternative, which is more expensive than pipeline gas and increased costs for industries like steel, fertilizers, chemicals, and glass.
- Declining Inventories:
- European gas inventories plummeted below pre-war averages, driving up gas prices and propelling the Dutch TTF benchmark contract to a 15-month high.
- Measures to Stabilize Gas Supply and Encourage Economy in Usage:
- The Federal Network Agency is working on regulatory frameworks, expanding the hydrogen infrastructure, amending the Energy Industry Act, focusing on grid-scale battery energy storage systems, and drafting a law to adjust the Energy Security Act.
