EU temporarily shift to coal to replace low Russian supplies

Several European Union (EU) members say they will use coal for power generation as an alternative to Russian gas.

The shift to coal-fired power generation is a reaction to Europe becoming decreasingly dependent on Russian gas and oil. However, this move could seriously undermine the EU’s ambition to become climate neutral by 2050.

Germany, Austria and the Netherlands have already stated that they will ease restrictions on coal-fired power stations, after Russian energy giant, Gazprom, said it would curb the capacity of Nord Stream to just 40%, reducing Russian flows to the EU to around 100 mcm/day (1 TWh per day).

Climate Action Network

Reported by Al Jazeera: Climate Action Network, an umbrella group for climate-related campaigning, also called the move “a bad choice with structural consequences.”

“Countries are continuing to back fossil energy rather than investing enough in renewables,” they said.

Another group, Carbon Market Watch, agreed that the move to coal was “worrying” and expressed hope it would “be as temporary as possible”.

The EU, as part of sanctions imposed on Russia for its invasion of Ukraine, is looking to phase in a ban on Russian coal and oil imports.

What sanctions has the EU adopted so far?

Since February, the EU has imposed a number of packages of sanctions against Russia, including targeted restrictive measures (individual sanctions), economic sanctions and diplomatic measures.

The EU has also adopted sanctions against Belarus in response to its involvement in the invasion of Ukraine.

The aim of the economic sanctions is to impose severe consequences on Russia for its actions and to effectively thwart Russian abilities to continue the aggression.

The individual sanctions target people responsible for supporting, financing or implementing actions which undermine the territorial integrity, sovereignty and independence of Ukraine or who benefit from these actions.

In return, Russia has taken to reducing gas and oil supplies to EU countries, driving up European energy prices and increasing market volatility.

Since the start of the Ukraine invasion, Europe has been steadily reducing its reliance of Russian gas, dropping from around 40 percent to 20 percent.

Find out more

For more information, visit Northern Gas and Power‘s Daily Market Report here.

Below, our Head of Flexible Purchasing and Energy Strategy, Latif Faiyaz, breaks down the key drivers affecting market behaviour this year.

Latif provides analysis of UK, European and global factors and provides a forecast for the remainder of the year.

Here’s the video 👇


More News

Every day is different at Northern Gas and Power | NGP Success Stories

Last week, we spoke to Amanda, one of our Business Account Managers at Northern Gas and Power. Amanda moved from...

NGP launches new Cycle to Work scheme

Today marks National Cycle to Work Day 2022, and at Northern and Gas and Power we’re launching our new Cycle to...

Government to begin £635m Public Sector Decarbonisation Scheme

Up to £635 million of government funding will be made available in September to NHS Trusts, schools and local authorities...