Distribute gas imports more
BDI boss: economy is not dependent on Nord Stream 2
01/29/2022, 16:07
Germany obtains large parts of its fossil fuels from Russia. However, BDI President Russwurm does not want to see too much dependence on Moscow. The German economy could do without Nord Stream 2. Experts, on the other hand, warn of Russia’s dominance in the energy mix.
According to Industry President Siegfried Russwurm, the German economy is not necessarily dependent on natural gas from the controversial Nord Stream 2 Baltic Sea pipeline. “Germany needs a secure energy supply. But it is not dependent on a single pipeline, not even on Nord Stream 2,” said the President of the Federation of German Industries (BDI) of the Funke media group.
Germany gets more than 50 percent of its gas from Russia. “It would certainly not be easy to replace this part completely or in large parts in the short term,” he added, referring to the Ukraine conflict. According to his assessment, however, Germany has not made itself too dependent on Russian energy supplies. “Russia has always delivered so far, including this winter,” said Russwurm. “Purchasing most of the gas from there was not a gamble, but reliable and cheap.” Now, however, the question arises as to whether imports should be distributed more.
According to data from the Federal Institute for Geosciences and Natural Resources (BGR), which was reported by “Welt am Sonntag”, Russia accounted for 34 percent of German oil imports in 2020. In relation to German consumption, Russian natural gas supplies accounted for just over 50 percent. 45 percent of the hard coal imports came from Russia.
“Energy resources of this magnitude cannot be substituted in the short term,” said BGR energy expert Martin Pein to the newspaper. “Quickly and completely replacing a market position like Russia has in coal, gas and oil is extremely difficult if not impossible.” Hubertus Bardt, head of science at the Institute of German Economics (IW Köln), expressed a similar view: “The options for substituting gas with other energy sources are limited.” This is possible at best in small parts of the electricity production.
Abandoning the EEG surcharge is not enough
Irrespective of the current concerns about security of supply, BDI President Russwurm has again called for a drastic reduction in electricity prices. “There is an acute need for action in the burden of network charges and the electricity tax. Therefore, these must be significantly reduced,” he told the Funke newspapers. With the government’s planned abolition of the surcharge under the Renewable Energy Sources Act (EEG), companies alone would not be able to achieve a globally competitive electricity price. He described an electricity price of four cents per kilowatt hour as sensible.
The Association of the Chemical Industry (VCI) called for the EEG surcharge to be abolished this year and not just in 2023. “From our point of view, that’s too late,” said VCI Managing Director Wolfgang Große Entrup of the “Augsburger Allgemeine”. The current increase in costs is an existential threat, especially for medium-sized companies in the industry.