Back to Coal: This Is How Europeans Were Affected by the Oil Crisis

Russia is the most important gas supplier for several European countries, as it is used to heat homes in winter and power industries.

However, there are growing expectations about Moscow's use of a natural gas weapon against Europe next winter to push it to stop supporting Ukraine.

The Director of the International Energy Agency, Fatih Birol, warned European countries that the Russian company Gazprom might stop the gas supply to the old continent before winter.

Accordingly, Europe is increasing investment in coal power plants to cover the expected large shortage in gas supplies.

Experts do not rule out that Moscow will cut off gas sooner to prevent European countries from guaranteeing their natural gas reserves and turning the political stability in the old continent upside down.

So far, Russia has cleverly managed to use the natural gas weapon in the war on Ukraine and turn the battle against its ruble currency from collapse to strength.

 

Russia's Weapon

In light of continuous warnings of Russia's turning down gas flows this winter, many European Union countries have started to think seriously about shifting to coal to guarantee their energy supplies.

Germany and Austria announced, at the end of last June, emergency measures to deal with the decline in Russian gas flows, including the possible use of coal-fired power plants for energy production.

This move comes weeks after the Russian energy giant Gazprom stopped providing gas supplies to many European Union countries, including Poland, Romania, Bulgaria, Finland, and the Netherlands.

Germany, Italy, Austria, and Slovakia have also faced reduced gas delivery volumes.

Russia's Gazprom announced on June 15, 2022, that it had reduced its gas shipments to Europe by a third through the Nord Stream 1 pipeline, justifying the decision by the failure of the German company, Siemens, to maintain the necessary equipment.

The company explained that it stopped operating another gas turbine from Siemens at the Portovaya station, where the Nord Stream 1 is being filled, but its production will decrease from 100 to 67 million cubic meters daily.

The Director of the International Energy Agency, Fatih Birol, warned European countries in a press statement last month that the Russian company, Gazprom, will possibly stop all gas supplies before the next winter season.

 

Back to Coal

The Austrian government announced, on June 20, that it would restart a coal-fired power plant to face the repercussions of Russia's decision to reduce its gas exports to European countries.

The government said in a statement that it would collaborate with the Verbund Group, the country's main electricity supplier, to restart a power plant in the southern coal-fired city of Mellach.

Austria seeks, through this decision, to promote the production of electricity through coal again in cases of emergency.

The German government followed Austria's step, announcing, on June 19, that it would take emergency measures to guarantee its energy needs.

The German Economy Minister, Robert Habeck, said in a statement that the country would limit the use of natural gas for electricity production and increase the burning of coal amid concerns about possible shortages caused by a cut in supplies from Russia.

Last month, Habeck announced that Germany's energy security is guaranteed despite slight declines in gas shipments, as it is compensated by other sources, with reference to coal.

The Netherlands also joined Germany and Austria and announced, on June 21, the lifting of restrictions imposed on the use of coal to generate electricity.

Dutch Minister of Climate and Energy Rob Witten said in a press conference that the government has decided to immediately lift the restrictions imposed on production in coal-fired power stations from 2022 to 2024, explaining that coal-fired electric stations can operate again at full capacity instead of 35% as the maximum limit.

 

Other Options?

Regarding his expectations for the future of energy, writer and economic analyst Mustafa Abdel Salam said that with the ongoing Russian-Ukraine war and the expansion of inflation in global markets, Europe is sliding rapidly towards a severe energy crisis; the worst since World War II.

In his interview with Al-Khaleej Online, Abdel Salam added that "the energy crisis is exacerbating day after day, and it may expand to turn into a fierce economic, financial and humanitarian crisis, especially with the transformation of gas into a rare and high-priced commodity, according to the assertions of the German Energy Minister."

According to the economic analyst, the crisis is also expanding with serious repercussions resulting mainly from the continuation of the Ukraine war and its dangerous effects on the economy of European countries and the global inflation wave.

The crisis is also exacerbated by the failure of the United States, along with Europe, to dispense with Russian energy, especially gas, and the failure to find alternatives.

He believed that this worsening crisis has already prompted several countries in the world to return to the use of coal in power generation, such as Germany, Austria, Britain, Japan, Australia, and other countries.

The old continent will face very turbulent times in the near future with the reduction of gas supplies; he said: "In any case, the coming period is difficult for Europe; I do not think that using coal to generate power will be enough to end the crisis before next winter."

According to him, Russia meets 40% of the continent's gas needs, a percentage that is difficult to cover within a few months before the coming winter season, especially with the lack of quick alternatives."