Gas-limited German cities are feeling the pinch

On August 1, the European Union formally began implementing the voluntary gas cuts agreed last month. Under the agreement, EU member states will cut gas demand by 15 per cent the average consumption of the past five years through their own measures between August 1 March 31. The move is aimed at preparing for the winter ahead of time for a possible disruption of Russian gas supplies. In Hanover, Germany, the lights were turned off at city hall, museums attractions, all public fountains stopped functioning. In public swimming pools gymnasiums gyms, hot water is no longer provided in the showers.

Total restrictions on public electricity use

Hanover, the capital of the German state of Lower Saxony, which is known as "Fair City", is one of the first German cities to propose a gas saving plan. A visit to the city over the weekend revealed that, unlike in previous summers, public fountains in public squares across Hannover have stopped spouting children have disappeared the water. While working out at a fitness center called MCFit, the reporter found that the bath was no longer providing hot water as usual. After nightfall, scenic spots public institutions in the city turn off their lights, leaving only part of the necessary road lighting.

According to the energy conservation regulations of the city of Hanover. The city government will shorten the heating time this year. October 1 this year to March 31 next year, government offices will only be heated, the high room temperature may only stay at 20 degrees Celsius. In storage rooms, technical rooms, corridors other places, the temperature is only 10 to 15 degrees. However, day care centers, schools, nursing homes clinics are exempt the energy-saving measures. The German heating season used to last until the end of April. Hanover Mayor Berit Ornay said the city hall would further restrict the use of electronic devices such as printers refrigerators, while air conditioners heaters would be banned. The mayor hopes companies other institutions will follow suit.

Several Hanover businesses local citizens told reporters that they have tried to conserve natural gas other energy sources are now reaching the limit of their ability to control their use. Meanwhile, many cities, including Hannover, still want to curb gas use further by raising prices. Germany is also working on a regulation that would ban the heating of private swimming pools with natural gas in winter.

People's lives have been greatly affected

Data show that about a third of gas consumption in Germany comes private households, on average one apartment in two is heated by natural gas. These days, many households in Hanover have received unpleasant notices - energy suppliers passing on rising gas prices to residential customers.

October 1st gas will become more expensive. All gas customers shall pay an additional charge of EUR 0.05 per KWH of Z high. Based on 2021 consumption estimates, the average annual gas consumption of a family of four in a 100-square-meter apartment is about 18,000 KWH, the gas bill amounts to 1,080 euros. The current price, plus a €0.05 surcharge on petrol, would be several times higher than last year equal to the average German's monthly income. Gas prices could triple by early next year, the head of Germany's Federal Network Agency told the German Newsroom Network.

The reporter went to the city of Hanover's largest electrical chain store, Wind City, found that there are a number of electric heaters on display. But the shop assistant told reporters that all the electric heaters had been sold out the exhibits could be sold, now they had to wait for new air heaters to be shipped China.

Many firewood factories are also in a hurry. Reporters visited two home furnishing chain stores after the discovery. Firewood wood chips have long been snapped up. Hanover resident Youdan, who did buy firewood, was disappointed, he told reporters, in order to prevent the lack of heating in autumn winter, to suffer the cold. He has replaced his natural gas heating system with a fireplace.

In addition to the source, the city of Hanover is also opening the flow. Germany's first hard coal plant, Mehrum Power plant Z, near Hanover, is nearing the end of its "reserve status" as an alternative to gas. The plant's general manager, John Faber, said the plant was operating at full capacity. "Right now the plant is like a car that has been in the garage for eight months is sure if it can be restarted," he said. Mehrum can power half a million homes, but it serves the whole of Lower Saxony, Hanover's energy crisis is a real solution.

Gas accounted for 11.2% of Germany's electricity generation in June, according to the Federal Network Administration. Coal-fired plants in the German states of Saarland North Rhine-Westphalia will also be connected to the grid.

The mayor of Hanover, Belit Ornay, stressed the city's desire to promote the use of renewable energy. The state governments of Hanover Lower Senksen have rented solar roofs EnerCity, an energy supplier based in Hanover, to put on the roofs of hundreds of buildings. By 2025, it will generate more than 15 gigawatt hours -- enough to power 6,200 homes.

"European countries are trying to save money at the expense of their citizens." Russian energy expert Dmitry Gusev said the EU's decision had been calculated was unwise, Sputnik news agency reported on August 1. "They did calculate what would happen if people took less showers? It's a health issue. Nor did they calculate what would happen if people had increased cardiovascular disease without air conditioning? What happens to retail if people stop traveling?"

Shadow of recession approach

Germany, Europe's biggest economy, may already be in recession under pressure. Germany's GDP grew by 0% in the second quarter compared with the first three months of the year, according to Eurostat, below economists' expectations of 0.1% growth. To two decimal places, the GDP index actually shrank by 0.04 per cent. Economists at Credit Suisse Deutsche Bank are forecasting a quarterly contraction the second half until at least the spring.

Deutsche Welle reported on August 1 that Germany's retail trade volumes ended the first half of the year with a 28-year sharp decline due to high inflation, COVID-19 the Russia-Ukraine conflict. Sales fell 8.8 per cent in June a year earlier, adjusted for inflation, according to figures released by Germany's Federal statistics office. Economists are predicting tough times ahead for retail.

'The decline in Russian gas consumption is bringing the eurozone economy close to recession, which could have irreversible consequences for energy-intensive industries the eurozone economy,' Sergei Korneychuk, an associate professor at the Federal Government School of Finance, was quoted as saying by Sputnik news agency. Imposing restrictions on Russian gas consumption for political reasons, switching to expensive liquefied natural gas, relying on "green" energy will help the European economy. As a result, the eurozone economy is rapidly heading into recession.

Abandoning Gazprom would be costly for Europeans. According to Russia's Independent newspaper on August 2, Gazprom reported that global gas demand in the first seven months of 2022 fell by 35 billion cubic meters compared with the same period last year, with falling demand the European Union being the key factor. The average price of natural gas on European exchanges rose nearly 50% in July to above $1,800 per 1,000 cubic meters. TTF benchmark Dutch gas futures are already trading between $1,500 $2,400 per thousand cubic metres, compared with less than $500 a year ago.

The beneficiary of the crisis is the United States. The U.S. became the world's largest exporter of liquefied natural gas in the first half of 2022 as it increased supplies to Europe, the U.S. Energy Information Administration (EIA) said Aug. 1, citing data CEDIGAZ. In the first five months of this year, about 71% of U.S. LNG exports went to the European Union the U.K., the EIA said.

For more information about the energy trading platform, please consult the financial service platform, warehousing logistics platform, hazardous chemicals business license processing platform bulk energy trading platform manufacturer Eurasia International Energy Trading Market Management (Jiangsu) Co., LTD.

                                                               Source: World Wide Web