German Agency Warns of Energy Supply Risks This Winter

On Thursday, Germany's Federal Network Agency (BNetzA) warned of risks to energy supply posed by a possible cold winter, despite improvements in supply situation.

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In order to secure Germany's gas supply during the winter, the 95 percent target for filling the country's gas storage was reached ahead of time in September.

Two weeks ago, BNetzA carried out an emergency exercise by simulating a gas shortage. Although Germany was much better prepared this winter than last year, it was "still too early to sound the all-clear," BNetzA Director Klaus Mueller said after the test.

Weather forecasts indicate that "early winter will be rather warm," a spokesperson for Germany's National Meteorological Service (DWD) said. The latter part of the winter will be colder, the spokesperson added, but "still quite mild."

The El Nino phenomenon, which can lead to cooling in Central Europe and Germany, is a "major influence that is not exactly predictable," the DWD spokesperson said.

On Wednesday, the German government approved a temporary extension of the so-called supply reserve. This allows lignite-fired power plants to return to the electricity market until the end of March 2024.

The supply reserve will be "reactivated to save gas in power generation and thus prevent supply bottlenecks" this winter, the Ministry for Economic Affairs and Climate Action said.