. In order to generate electricity, Germany is using more coal as Europe's energy crisis gets worse.
. According to Destatis data, coal-generated electricity increased by 17.2% year over year in the first half.
. Germany, meanwhile, reduced its natural gas-based energy production from 14.4% to 11.7%.
Germany is currently producing about a third of its electricity from coal as it rushes to replace Russian gas before winter.
Germany is using more coal to produce electricity as a result of Russian gas shortages, which require the nation to look for alternate fuel supplies before winter.
According to fresh data from Germany's national statistics office, Destatis, the European country generated 82.6 kilowatt-hours of electricity from coal-fired power plants in the first half of 2022, a 17.2% increase from the same period last year. As a result, coal was used to produce 31.4% of the electricity used.
Russia decrease European supplies
As repeated gas cuts from Russia decrease European supplies, the switch from gas to coal illustrates Germany's urgent attempts to store fuel before the winter weather sets in later this year. In retaliation for the boycotts and sanctions the West imposed on Russia after its invasion of Ukraine, the country has been accused of "weaponizing" energy.
Germany has practically been compelled to switch back to the dirtiest fossil fuel because coal is less expensive than gas and is a more readily available fuel source. To lessen its reliance on Russian energy, one of its energy firms, Uniper, recently restarted a coal-fueled power plant that had been idle.
The Dutch TTF natural gas futures contract, which serves as the standard for natural gas pricing throughout Europe, has seen record high prices this year, with prices above 340 euros ($340). Due to the possibility of a European agreement to regulate Russian gas prices, prices were down 4% at 204 euros at the time of the most recent check on Thursday.
ICE Futures
According to ICE Futures, the price of Rotterdam coal delivery for October dropped 5% to $338 from around $430 in March. Analysts cautioned that rising coal prices could result from increased demand.
According to SEB analyst Ole Hvalbye, "When nat gas is this expensive, consumers prefer coal and oil instead, so this goes up in price."
Germany has been the hardest hit by the devastating energy crisis plaguing Europe, with one of its largest banks, Commerzbank, warning that if Russia permanently cuts off supply, the country could experience a recession similar to the one that occurred in 2009.
