RWE, Germany’s largest power producer, has publicly asserted the nation’s gas supply is secure despite the onset of winter, but cautioned against complacency regarding the fragility of the broader energy system. In an interview with the “Rheinische Post”, CEO Markus Krebber stated that while a typical winter scenario presents no immediate threat to gas availability due to stable supply routes, the entire energy infrastructure remains precariously balanced, posing significant risk.
Krebber’s relatively optimistic assessment regarding gas supplies is tempered by a call for expanded Liquefied Natural Gas (LNG) terminal capacity. He emphasized that ensuring resilience against exceptionally harsh winters or potential supply disruptions necessitates a robust and flexible LNG infrastructure capable of drawing on diverse international sources. The statement subtly underscores the ongoing debate surrounding Germany’s energy security strategy, particularly the reliance on LNG imports following the reduction of Russian gas deliveries. Critics have long pointed to the potential vulnerability inherent in diversifying supply chains rather than fundamentally restructuring domestic energy production.
Looking ahead, Krebber predicts a softening of gas prices over the next two years, attributing this trend to an anticipated increase in global LNG supply. This forecast, aligned with market expectations, signals a potentially easing pressure on German consumers and businesses facing energy costs. However, the CEO’s perspective also reveals a complex interplay of factors, hinting at potential volatility linked to international geopolitical developments and the ongoing reconfiguration of energy markets.
Regarding electricity prices, Krebber anticipates a consumer benefit by 2026, driven by anticipated wholesale price stabilization and state subsidies on grid fees. While acknowledging a projected increase in network costs, the CEO suggested that the net effect will be lower electricity bills for many households. He further highlighted the urgent need for structural relief for German industry concerning electricity pricing, a point which speaks to the government’s ongoing efforts to maintain industrial competitiveness amidst rising energy costs and concerns about energy-intensive industries relocating to more affordable markets. Krebber’s assessment, while generally positive, implicitly reinforces the political pressure on Berlin to recalibrate energy policy for long-term sustainability and economic stability.
