Thursday, September 01, 2022

Germans Brace for Winter of Cold Showers

 


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Aug 31, 2022

TODAY

Wholesale energy prices are skyrocketing across Europe. The European Union imported 40% of its gas from Russia in 2021, but now Moscow is leveraging that influence to push up prices and maximize revenues while decreasing sales to pressure the bloc. Germany, Europe’s leading manufacturer and the largest importer of Russian gas, is the most exposed: Russia covered over 50% of its gas needs in 2021.

Germany is now preparing for a difficult winter, as energy costs rise and the threat of a Russian halt to gas supplies looms. At stake are personal finances as well as environmental and political consequences. Less gas translates into more coal consumption — perhaps even an extension of nuclear power plants. Inflation is also a politically sensitive topic: The hyperinflation in the 1920s helped fuel Nazism to power in the 1930s.

Germans are responding with a range of unconventional attempts to insulate their country from the worst effects of a winter gas shortage — starting with the bathroom.

 with reporting from Sergio Matalucci in Berlin 

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Shower-less winter?

Roberta Barone, a Berlin-based data ethics expert, now takes a full shower just three times a week. On other days, she settles for quicker dips under the water. With the prospect of a heating crisis this winter, cutting down on her bathing time made sense. “Faster and less frequent showers are not a problem,” she told OZY.

 

According to a local consumer awareness group, an average shower — at room temperature — consumes about 3kwh of power, costs about $1 in energy and emits 2.8 pounds of CO2. Recent surveys have suggested that the average German shower lasts about 10 minutes.

 

Earlier this summer, Minister of Economic Affairs and Climate Action Robert Habeck asked citizens to halve shower times. Barone acknowledged that personal contributions like hers aren’t a long-term solution but said they still help society confront its wastefulness.

 

Barone is also contemplating other ways she — and others who, like her, are single — can help. “Unlike families who have children in school and other people who can't telework, I am mobile and I wouldn't mind relocating for the winter,” she said. “That's one less apartment you need to heat in Berlin.” But there’s one more factor she must consider before relocating: “I should check first the energy needs related to the flight.”

 

The argument is simple: Teleworking from EU countries that don’t require heating over the winter could be a pleasant way to consume less energy and save on bills. “I think that a one-size-fits-all approach does not actually exist, but the point is that we should all try to give our modest contribution,” Barone said.

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Hot and cold, dark and sunny

How Germany handles its energy shortage and transition away from its dependence on Russia will have political implications. German Chancellor Olaf Scholz, who took office in December 2021, is battling a slump in popularity. A recent poll showed that 62% of Germans are unhappy with his tenure, and 65% are dissatisfied with the current government.

 

By contrast, Habeck routinely polls highly among German politicians. Are his proactive moves on energy — even if largely symbolic — responsible, at least in part? Habeck recently said that his ministry would keep its few air conditioning systems off despite unusually intense heat this month. Only a tiny minority of German households — 3.1% in 2015 — have an AC, so Habeck’s decision is meant mostly to set an example of how communities and individuals can contribute.

 

And, like Barone, many around Germany are responding.

 

Hanover has banned hot showers at gyms, swimming pools and public buildings. Cologne’s cathedral — Germany’s most-visited tourist location — won’t be lit up at night. A housing cooperative in Dippoldiswalde, a small town in Saxony, recently informed its tenants that they would now receive hot water only in the early morning, at midday and in the evening. Germany's largest real estate group, Vonovia, has announced that it will be cutting back on heating in the fall and winter, reducing the temperature of central heating between 11 p.m. and 6 a.m. And a forest owner in the country’s east has offered wood chips from his trees to help nearby residents heat their homes during the coming winter.

 

Many Germans are turning to heat pumps, but the strong demand has left manufacturers struggling to deliver adequate supplies.

 

DIY solutions remain an option. Karolina Attspodina, a Germany-based Ukrainian businesswoman, founded We Do Solar in July 2021. This Berlin-based startup developed a solar panel set for balconies. People can install the set with weatherproof straps and plug it directly into the power socket. The system does not require professionals, and We Do Solar says it can help households save up to 25% on their electricity bills.

 

Millions of Germans are also choosing electricity over gas. A survey conducted by the price comparison portal Verivox in early August shows that 30% of households are considering purchasing electric heating appliances. In other words, 12 million homes are ready to decrease gas consumption and increase electricity usage. But a switch from gas to electricity might not be that efficient, as electricity is produced partly from gas and, for the time being, gas remains cheaper than electricity.

 

Still, these initiatives are another sign of growing awareness: German consumers know that the clock is ticking.


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Sweat and tax

Meanwhile, the government is looking to deepen its energy ties with gas-rich countries like CanadaQatar and Norway. Germany would then store the fuel in its own facilities, which can cover 25% of its yearly needs.

 

However, new energy deals don't usually bring immediate advantages, as they often require lengthy negotiations, planning and investments. Germany does not yet have any liquefied natural gas (LNG) terminal: It expects to commission its first two by the end of the year. “Germany has focused a lot on ensuring alternative supplies and filling storages. In my view, way too little has been done so far to encourage gas demand reduction,” Georg Zachmann, senior fellow at Bruegel, told OZY.

 

To tackle the emergency, the government recently proposed a new levy of 2.4 Euro cents per kilowatt-hour (kWh), or around €480 ($480) for an average family per year. The new tax should support utilities replacing Russian gas with more expensive supplies.

 

To counterbalance the additional costs, the government has cut the value-added tax (VAT) on natural gas from 19% to 7%. Scholz expects companies to pass on this tax decrease to consumers.

 

“Many German households’ prices are still contractually fixed at levels below current wholesale prices,” Zachmann said. “Hence, it is unclear whether saving incentives will be sufficient to reach the 10-to-20% demand reduction needed to get over the winter without Russian gas.”

 

The Scholz administration seems to understand and is trying other measures to cut energy consumption: Last Wednesday, the government announced that public buildings must not set the temperature above 19°C (66.2 °F). The restrictions on the private sector are fewer: Private pools and common areas like stairs ought not to be heated; electronic advertising by stores may also be banned at night; and gas heating systems are to be eventually replaced.

 

Yet even with all of these steps, Habeck has conceded that Germany will be able to cut consumption by only 2%. More rules and incentives to cut use are needed, according to experts.

 

Zachmann suggested that at the end of the day, the main factor this winter will be the heating decisions made by individual households.

 

And if Germany sneezes, all of Europe might well catch a cold.


Community Corner

Is your government (in the US or the country where you are based) doing enough to shield ordinary people from the effects of soaring energy costs? Do tell us — and let us know what more you might like them to do.

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