Sign up now for FREE unlimited access to Reuters.com Register BRUSSELS / OSLO June 22 (Reuters) – The European Union will temporarily turn to coal again to tackle shrinking Russian gas flows without derailing long-term climate targets, an EU official said on Wednesday. gas prices and rising prices spark a road race. for alternative fuels. European leaders have rounded up Russia as flows through the Nord Stream 1 pipeline fell to just 40% of capacity, deepening the energy controversy following the invasion of Ukraine that prompted Europe to impose harsh sanctions on Moscow. To address gas shortages, the International Energy Agency (IEA) has said Europe must replace Russian energy supplies while boosting efficiency and renewable energy sources, including nuclear power. read more Sign up now for FREE unlimited access to Reuters.com Register In a statement to Reuters, IEA chief Fatih Birol warned that Russia could continue to find excuses to cut supplies or suspend them altogether as winter approaches. Russia has denied that supply cuts were premeditated. read more Germany, Italy and the Netherlands have all pointed out that coal-fired power plants could fill supply gaps, even as Germany prepares to host a G7 summit, reaffirming its commitment to ambitious targets. climate change. read more Europe will temporarily pursue fossil fuel alternatives to Russian gas in light of the actions of President Vladimir Putin, a senior European Commission official has said. “Russia’s illegal invasion of Ukraine has led to a state of emergency in the EU,” said Elina Bardram, the European Commission’s deputy director for international affairs and climate finance, at the Africa Energy Forum in Brussels. “With the very ruthless moves we are seeing from the Putin administration to reduce the flow of Gazprom all of a sudden, we are taking some very important steps, but all of these measures are temporary,” he added. The measures will be phased out as soon as possible, as the EU is determined to stick to its climate targets, he said. “The EU targets for 2030 and 2050 remain fully intact … while we can temporarily increase coal use, the long-term direction is clear,” added Bardram, who led the European Commission delegation to the Paris talks on the climate in 2015.
EXPLORATION OF ALTERNATIVES
Countries have outlined a series of measures to tackle a supply crisis to address concerns about winter energy shortages and rising inflation that could test Europe’s determination to maintain sanctions on Russia. German Finance Minister Christian Lindner said Tuesday night that there was a risk of a serious economic crisis and stressed the need for alternatives to overcome three or more years of energy shortages. A note from the Royal Bank of Canada expected that the filling rate of gas storage facilities would slow down and that governments would take action to reduce demand. “Many countries seem to be reconsidering coal closure,” he said, adding that “we do not believe that the situation can only be remedied by supply-side measures and we expect a significant response from the demand side.” Another flashpoint in the energy crisis could come in the Baltic. President Gitanas Nauseda said Lithuania was ready for Russia to exclude it from a common electricity grid in retaliation for blocking rail shipments of certain Russian goods to the Kaliningrad region of Moscow. read more Russian gas flows to Europe via the Nord Stream 1 pipeline and deliveries via Ukraine remained stable on Wednesday, but remained significantly lower than last week. Gazprom said it was reducing flows through Nord Stream 1 last week, citing technical issues. The reference price for gas in Europe was trading at around € 127 ($ 133) per megawatt-hour (MWh), below this year’s ceiling of € 335, but still rising more than 300% from a year ago time. Europe is trying to fill its winter gas reserves – now at 55% – as it fears further supply disruptions from Russia, which has already cut off some customers. Lindner’s warning came after the German industry association BDI said a recession in Europe’s largest economy would be inevitable if Russia cut off gas supplies. read more The EU and other developed economies have imposed sanctions on Russian oil and coal, but have banned gas imports. Enhancing nuclear infrastructure aging could offer a respite from high energy prices and limited supplies, the IEA said. “In light of the renewed interest in the role of nuclear energy in clean energy transitions, the war underscored the need to explore options for … investment in new facilities as well as the reopening of existing (uranium) conversion plants.” Overall, the $ 2.4 trillion to be invested in energy this year included record spending on renewable energy, but could not bridge the supply gap and tackle climate change, the IEA said. Sign up now for FREE unlimited access to Reuters.com Register Additional references by Nina Chestney. written by Matthias Williams. edited by Jason Neely and Elaine Hardcastle Our role models: The Thomson Reuters Trust Principles.
