German Federal Council Adopts Resolution on Gas Storage in Germany

INES welcomes today's resolution of the German Federal Council (Bundesrat) on gas storage in Germany. The resolution states that gas storage makes a significant contribution to security of supply and is a cornerstone of the energy transition.

Sebastian Bleschke, Chief Executive Office of INES, comments: “Today’s resolution is an important step towards more competitiveness for German gas storage operators and a level playing-field concerning the gas storage regulation. Gas storage is welcomed as an integral part of the energy transition. We therefore welcome the resolution and hope that the German government acts upon this mandate in a concrete and timely manner.”
More on the resolution:
In its 978th meeting on June 7, 2019 the German Federal Council (Bundesrat) has taken a resolution on gas storage in Germany. The resolution had passed the Economic and Environmental Council of the Bundesrat before. The resolution states that:

  • gas storage is a key part of securing the gas supply,
  • without gas storage a massive increase in network development would be necessary to secure the gas supply in Germany causing significantly higher costs than using the gas storage facilities, and
  • gas storage provides a solution for one of the biggest challenges for the energy transition, namely long-term storage of renewable energies.

At the same time gas storage operators work under the current regulatory framework face a strong economic pressure. With regard to this issue the Bundesrat calls upon the German government to take the following measures:

  • reduction of the monetary burden for German gas storage operators through conversion charges (“Konvertierungsumlage”) and network tariffs,
  • increasing tendering volumes for so-called Long-Term-Options (LTO) and limiting the calls for tenders on gas storage connection points, and
  • adapting levies and charges to allow for an effective sector coupling.

You can find the resolution of the Bundesrat here.