Germany's Energy Dependency on Russia: Myths and Realities

Is Germany reliant on Russia for energy? The answer is more nuanced than a simple 'yes.' While Germany has faced significant energy challenges, its dependence on Russian energy is often overstated, especially when compared to other global powerhouses. Germany is willing to use coal and wood-burning plants as a short-term measure, but the extent of this reliance is not as deep as many media portrayals might suggest.

Current Energy Landscape

Germany does rely on Russian energy, but this dependency is multifaceted and evolving. As of 2020, the dependency breakdown was as follows:

Oil - 34% Natural Gas - Over 50% Coal - 45%

Germany's energy strategy has been shaped by a series of strategic decisions. Firstly, the country made the decision to abandon nuclear energy in the wake of the Fukushima disaster in 2011. Secondly, it planned to phase out coal by 2038. Both of these decisions have contributed to Germany's current energy mix.

Financial Minister's Perspective

During a panel discussion, German Finance Minister Olaf Scholz offered his perspective on Germany's energy dependency. According to Scholz, gas is not a very important part of Germany's energy sector relative to domestic production and renewable sources.

"Gas is not a very important part of energy in Germany. If you look at the publications in the media of some countries, it seems that it is only about gas. This is not true," said Minister Scholz.

He further explained that Germany has made two critical decisions:

Abandoning nuclear and coal energy usage Investing in renewable energy sources

While these decisions have led to an increase in the use of natural gas as a transitional fuel, the proportion of natural gas in Germany's energy mix remains relatively small.

Addressing LNG Import Challenges

One of the significant challenges Germany faces is the lack of infrastructure for liquefied natural gas (LNG) import. Currently, there are no LNG terminals in the country. The Minister pointed out that when he was the mayor of Hamburg, he was actively working to establish the necessary infrastructure, but the projects were ultimately shelved due to the high cost of LNG.

"The problem with the purchase of liquefied gas is that there is still no LNG terminal in Germany. It is not as important as it is being discussed abroad," Scholz stated.

Germany has now decided to build its first LNG terminals. The plan is to have two or three LNG terminals operational by 2022. This development will help address the current energy dependency issues by diversifying the country's energy supply.

Conclusion

While Germany does rely on Russian energy, particularly for natural gas, this dependency is not as all-encompassing as popular discourse might suggest. Germany is actively working on developing renewable energy sources and plans to build LNG terminals to enhance its energy security.

Germany's energy strategy is in a state of transition, and while the challenges are real, the country is taking significant steps to diversify its energy mix and reduce its reliance on any single source of energy.