Germany's RWE unveils energy security measures as Ukraine crisis continues

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ENERGY & UTILITIES

Germany's largest energy firm RWE has unveiled a raft of measures that it says will ensure the security of supply and fuel diversification in the face of the ongoing war in Ukraine.

The announcement was made at RWE's annual press conference and focused on the close connections between energy security and climate protection, as well as the impact of the war. 

The company said it intended to forge ahead with the expansion of its green business which would see investments of €50 billion by 2030.

Read more: How the Russia-Ukraine war could impact energy markets

In a statement, it said that renewable energy and flexible generation plants based on green molecules, such as hydrogen, were key to long-term independence from imports of coal, oil and gas.

RWE also said that short term measures were necessary to "ensure stability of energy supply for the coming winter and in the following years" and announced that it was "currently reviewing" which of its coal plants that are offline or scheduled for decommissioning could be transferred into a reserve instead.

According to the company, it has power plants totalling 2.7 GWh that are already decommissioned, scheduled to go offline this year, or currently on "security standby". These include the hard coal-fired plant 800 MW Kraftwerk Westfalen, which was decommissioned at the end of 2020 and 300 MW lignite unit in Neurath, which was decommissioned at the end of last year.

The energy giant called on the government in Berlin to decide if the units would be needed on a temporary basis and to what extent they could be used to reduce the country's gas consumption.

Germany relies on Russia for around a third of its natural gas supply. While supplies from Russia are currently flowing as normal, earlier this month Russian Deputy Prime Minister Alexander Novak hinted at the possibility of shutting off its main Nord Stream pipeline in response to Berlin halting approval of a second line across the Baltic. 

Read more: How close is Germany to its climate goals?

Following the US sanctions on Russian energy, the issue came under even heavier scrutiny in Germany. Earlier this week, economic and energy minister Robert Habeck warned of mass poverty and mass unemployment if his country were to follow Washington and stop using Russian oil and gas.

RWE said in a statement that there was "no question that these measures will not change the fundamental decision to phase out coal," adding that the speed at which the phase-out could be done would "depend on the speed of expansion of renewables and grids, the ramp-up of the hydrogen economy, and the construction of flexible generation capacity".

Securing raw materials is also a key factor for energy security, the company said, pointing to the LNG terminals currently under construction in the towns of Brunsbüttel and Wilhelmshaven.

"The impact of the war is hitting the energy markets with full force. Therefore, ensuring the security of supply and diversifying fuel supplies are the top priorities for policy-makers – particularly also through the expansion of renewables," said Markus Krebber, CEO of RWE.

Read more: German "green gas" terminal fast-tracked due to energy crisis

The government in Berlin has ramped up its energy targets, now aiming to fulfil all its electricity needs with supplies from renewable sources by 2035.

In January, Habeck announced climate emergency programmes, aiming to accelerate the growth of renewables, which would be bundled into an "Easter package" and ready for cabinet approval at the end of April.

"I am counting on the upcoming 'Easter package' leading to a real acceleration and boost in the transformation process. We need that. And RWE supports it! We will implement every renewables project that’s possible," said Krebber.

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