France, Germany agree on ‘exchange support’ on energy supplies | Business

France, Germany agree on ‘exchange support’ on energy supplies |  Business

France, Germany agree on ‘exchange support’ on energy supplies | Business

The French and German prime ministers signed an agreement in Berlin today, Friday, on measures to enable “mutual support” between the two countries in order to guarantee “energy supplies” in times of rising prices.

A joint statement signed by French Prime Minister Elisabeth Born and German Chancellor Olaf Schultz decided on “concrete measures” in this direction, notably that France would help Germany by supplying gas to Germany, while Paris would help Berlin of “backing up the power supply”. “

France became a net importer of electricity for the first time in 42 years due to the lowest generation of electricity from nuclear power since 1981. It has been a net exporter of electricity to its neighbors since 1981, thanks in particular to nuclear power plants, which account for more than 60% of the country’s electricity production.

But since last January, France has been importing more electricity than it exports because about half of its nuclear plants are no longer available due to scheduled and sometimes lengthy maintenance or corrosion problems.

The level of supply should allow France to easily pass next December, but for next January there is a risk of blackouts, especially in extreme cold, if consumption does not fall.

The agreement signed with Berlin formalizes an effort that Germany has begun implementing since mid-November to “maximize as much as possible the interconnection capacity available to the market,” according to the text of the deal.

Under the new deal, France will help Germany by supplying gas, while Berlin will help Paris secure energy supplies (Shutterstock).

In addition, Germany commits to “postpone the gradual decommissioning of the remaining nuclear power plants (in the country) until mid-April 2023 in order to provide additional volumes of electricity exchange with France” and “to mobilize all market and reserve production capacities”. to increase the flow of electricity to France.”

It’s also a historic turning point for Germany, as the country was heavily dependent on Russian gas and needs to diversify its supply by turning west.

France has 4 ports to receive LNG, while Germany has no terminal, and France plans to build an additional floating LNG terminal in Le Havre in winter 2023-2024.

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