Four years after the gas shock: how Germany rebuilt its energy supply
LNG terminals, storage mandates, price brakes and the nuclear exit: a detailed reconstruction of German energy policy since 2022.
Until 2022 Germany sourced a large share of its natural gas from Russia – around 55 percent in 2021, according to the federal government. Russia's attack on Ukraine turned this dependency into the central economic risk within months. This analysis reconstructs the measures taken and their effects.
The supply stop
From June 2022 Russia gradually cut deliveries through the Nord Stream 1 pipeline; by the end of August 2022 they stopped entirely. On 26 September 2022 leaks after explosions were detected on Nord Stream 1 and 2. The government had already declared the early-warning level in March 2022 and the alert level of its gas emergency plan in June 2022.
Storage as a buffer
The Gas Storage Act, in force since April 2022, set mandatory minimum fill levels for German storage sites. The Federal Network Agency publishes fill levels continuously. In autumn 2022 targets were reached earlier than planned, a key factor for security of supply in the first winter.
LNG at record speed
To replace pipeline gas, Germany turned to liquefied natural gas. The LNG Acceleration Act drastically shortened permitting. In December 2022 the country's first floating LNG terminal opened in Wilhelmshaven, with further sites following. Pipeline imports from Norway, the Netherlands and Belgium also rose.
Price brakes and relief
As wholesale gas and power prices hit record highs in 2022, the Bundestag adopted gas, heat and electricity price brakes for 2023, capping prices for most consumption by households and firms. They were financed via the Economic Stabilisation Fund, endowed with up to €200 billion.
Nuclear exit despite the crisis
After a short extension, Germany's last three nuclear plants – Isar 2, Emsland and Neckarwestheim 2 – went offline on 15 April 2023. The decision remained politically contested. In parallel, the government accelerated wind and solar expansion with several legislative packages.
The European dimension
In May 2022 the European Commission presented REPowerEU, built on energy savings, diversified supply and faster renewables. The International Energy Agency's gas market reports document how strongly Europe's supply mix has since shifted towards LNG.
Impact on industry
Energy-intensive sectors – chemicals, metals, glass, paper – were hit particularly hard. Destatis recorded marked output declines in energy-intensive industries in 2022 and 2023. Some companies have permanently reduced capacity in Germany.
Assessment
The feared gas shortage did not materialise, but at higher costs than before 2022. Supply is now more diversified, while competitive energy prices for industry remain an open question. Sources for all data are listed below.