Germany plans state gas reserve after winter storage target missed

Germany plans to create a state-led gas reserve of 24 terawatt-hours after private storage facilities missed their filling target ahead of winter, with the cost expected to be passed on to households through their gas bills.

The reserve is intended for emergencies and serious disruptions to gas supplies, including sabotage. It would equal about 10% of Germany’s current storage capacity and must be filled within three years. The private sector will remain responsible for filling the country’s ordinary gas stores.

Those stores were 62% full at the end of October, below the 70% target. The shortfall has drawn political criticism in Berlin.

Germany’s economy ministry estimates that a levy on household gas bills would raise them by 0.3% to 0.5%. The reserve is expected to cost between €1.3bn and €1.8bn to fill, excluding the additional expense of operating it.